Department of State Bulletin

'V/m

THE DEPARTMENT OF STATE BULLETIN

Volume LXXII No. 1878 June 23, 1975

SECRETARY KISSINGER ATTENDS lEA AND OECD MEETINGS AT PARIS Statements, Informal Remarks, and Texts of Communiques 837

PANAMA AND THE UNITED STATES: TOWARD A NEW RELATIONSHIP Address by Ambassador at Large Ellsworth Bunker 859

THE UNITED STATES AND THE FUTURE OF THE UNITED NATIONS Statement by Ambassador John Scali 865

THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY

For index see inside hack cover THE DEPARTMENT OF STATE B U L L E T I

Vol. LXXII, No. 1878 June 23, 1975

The Department of State BULLETIi^ a weekly publication issued by th Office of Media Services, Bureau Public Affairs, provides the public an interested agencies of the governmen

with information on developments I'/l the field of U.S. foreign relations and on the work of the Department and the Foreign Service. The BULLETIN includes selected press releases on foreign policy, issued by the YVhite House and the Depart' ment, and statements, addresses, and news conferences of the President and the Secretary of State and other For sale by the Superintendent of Documents U.S. Government Printing Office officers of the Department, as well as Washington, D.C. 20402 special articles on various phases of PRICE: international affairs and the functions 52 issues plus semiannual indexes, of the Department. Information is domestic S42.60, foreign $53.13 included concerning treaties and inter- Single copy 85 cents national agreements to which the Use of funds for printing this publication United States is or may become a approved by the Director of the Office of Management and Budget (January 29, 1971). party and on treaties of general inter-

Note: Contents of this publication are not national interest. copyrighted and items contained herein may be Publications of the Department of reprinted. Citation of the DEPARTMENT OF State, United Nations documents, and STATE BULLETIN as the source will be legislative material in the field of appreciated. The BULLETIN is indexed in the Readers' Guide to Periodical Literature. international relations are also listed. Secretary Kissinger Attends lEA and OECD Meetings at Paris

Secretary Kissinger visited Paris May 26- REMARKS TO THE PRESS, MAY 27 '

>8, where he headed the U.S. delegations to What is the best birthday present you he nmiisterial meetings of the Governing Q. could ivish? 3oard of the International Energy Agency lEA) and the Council of the Organization Secretary Kissinger: Just to continue to or Economic Cooperation and Development make progress toward peace in all areas. 'OECD). Following are his arrival state- The President and I had a very good, a nent, his statements in the meetings, and a very cordial talk. We reviewed the state of lews conference and informal remarks, to- our bilateral relations, which I judge to be lether ivith the texts of a communique issued excellent. The President explained his views it the conclusion of the IEA meeting and a about the formation of Europe, with which •ommuniqne and declaration issued at the we are in general agreement. He informed •onclusion of the OECD meeting. me of the French contacts with various energy producers, and I told him of similar contacts that the United States had had. We ARRIVAL STATEMENT, MAY 26 discussed the energy preparatory conference in the spirit of reconvening it. We think the »ress release 299 dated May 27 conditions are favorable to resume the work Ladies and gentlemen: Secretary Simon of the preparatory conference, and the [William E. Simon, Secretary of the Treas- United States will support whatever efforts ury] and I are here to attend the meetings France may make as the convening power )f the International Energy Agency and to reassemble the conference. )f the OECD, two institutions which are Q. When do you expect the conference to designed to deal with the problem of inter- resume, sir? dependence of the industrialized societies as Secretary Kissinger: Well, this we will well as of the relationship of the industrial- have to discuss, of course, in detail, and we ized societies with the developing countries. will have to discuss it with some of our We consider the problems of energy, the also the lEA, but I think within the problems of growth, and the problem of partners in months. the relationship between the industrialized next and the developing countries among the prin- Q. Did you talk about the Middle East, cipal issues of our time. sir? We have come here with an attitude of Secretary Kissinger: We had just a very cooperation and with the conviction that only brief discussion, a brief reference. through the close cooperation of the coun- Q. And the Atlantic alliance? tries that will be represented here can major Secretary Kissinger: We discussed the At- progress be possible. While I am here, I lantic alliance and the forthcoming meeting also look forward to an opportunity to ex- President and President Ford. change ideas with the President of France, between your who has kindly invited me to breakfast to- ' Made following a breakfast meeting with Presi- morrow with several other colleagues. dent Valery Giscard d'Estaing of France (text from Thank you very much. press release 301).

June 23, 1975 837 — :

Q. What do yon expect from the vieet- energy system capable of providing, on tei ti- ing betiveen President Ford and President fair to all, the fuels needed to continue and Sadat? extend the progress of our economies and our societies. path Secretary Kissinger: As I pointed out be- The that the members of this fore, we would like to learn the precise views Agency have chosen begins with con- of the President of Egypt about how peace sumer solidarity. But a durable interna- in the Middle East can be advanced. We, of tional system must ultimately encompass, course, have been undertaking an assessment and be built by, both the consumers and of our policy, and we will inform President the producers of the world's energy. Sadat of our present tentative thinking This Agency has made remarkable prog-" ress which will not be concluded until we have since the Washington Energy Confer- also talked to Prime Minister Rabin [of ence 15 months ago. We recognized at Israel]. But we will make clear, as we have Washington that the energy crisis was the stated repeatedly publicly, that the United most severe challenge to industrial civilization since States is not prepared to accept a diplomatic the Second World War. For a stalemate in the Middle East and that we generation North America, Europe, and are convinced that progress toward peace in Japan increasingly allowed oil imports to the Middle East must continue. replace their own energy production. In 1950 the industrialized world imported 5 The press: Thank yon, sir. percent of its requirements. In 1960, this had grown to 17 percent; by 1972, it had STATEMENT BEFORE MINISTERIAL MEETING reached 39 percent. OF THE lEA GOVERNING BOARD, MAY 27 The embargo and price rises of 1973 taught us how vulnerable we had become. We saw that neither the supply nor the Today we begin a week of deliberation price of a central factor in our economies on the central problems of the industrial was any longer under our control. Our well- democracies: energy, economic prosperity, being and progress had become hostage to the building of a constructive relationship decisions in which we could not take part. with the developing nations, and insuring At the Washington Energy Conference we recognized the security of our own countries. that only collective action could reduce our excessive dependence on Of these, no issue is more basic to the imported oil and restore future than the challenge of energy. The to our governments mastery over our fundamental achievements of our economies, own economies and foreign policies. Separately could and the modern civilization they sustain, we never create conditions for lower oil prices. have been built upon the ready availability Nor could any one of us, except at exorbitant of energy at reasonable prices. cost, defend against a new embargo. Our security, our eco- The energy crisis of 1973 first brought nomic growth, our role in the home to us the full implications of the new world, were reality of global interdependence. Energy at risk. Nothing so stands as the first and most fundamental of vividly demonstrates the cooperative vitality of industrial these new problems; its magnitude compels the democracies as the us to cooperation. Without that cooperation, speed and imagination with which this acted we risk a return to nationalistic rivalry and Agency on these conclusions. It articulated a economic decline comparable to the bitter realistic strategy for attack- ing the problems of price and experience of the thirties. Now all nations supply and rich and poor, industrialized and develop- launched a series of major steps which together make up the ing—must decide whether growing inter- elements of a comprehensive dependence will foster common progress or program common disaster. —To safeguard against future energy Our objective must be to construct a world emergencies, we committed ourselves to build

838 Department of State Bulletin stocks of oil and, in the event of an embargo, prices, and even larger cutbacks to support to cut our consumption by an equal per- an increase. Individual producers, especial- centage and to share available oil. ly those with ambitious development, de- —For financial solidarity, the nations com- fense, and other spending programs, will be prising the OECD agreed on a fund of $25 under pressure to increase sales or at least billion to protect against financial disruption to refuse further production cuts. Thus at from oil deficits or from arbitrary shifts some point, if this process succeeds, the of funds by the producers. cartel will have lost the exclusive and arbi- —To prevent an increase in our vulner- trary control over prices. ability over the next few years, we set con- We acknowledged from the start that our servation goals and agreed on procedures to countries vary widely in energy needs and verify their implementation. potential. Some of us have major and as yet —To lessen our long-term vulnerability, untapped oil, gas, and coal reserves. Others we agreed on an ambitious policy to develop must rely almost entirely on nuclear energy new energy sources through cooperation on and new technology to reduce national de- individual development projects and safe- pendence on imported oil. guarded by a minimum price mechanism. This very diversity gives a strong impetus —To develop the technology to achieve in- to our cooperation. Because of our interdependence by the end of the century, we dependence, we all have an interest in each established a far-reaching program of co- other's success. The action each country operation in energy research and develop- takes to reduce its vulnerability reduces the ment. vulnerability of us all. And the decision to —Finally, we recognized the reality of the work cooperatively assures an equitable new economic and political conditions in sharing of costs and benefits. The sacrifices which we are acting. Over the long term, a of one country will not simply be ofl!'set by stable world energy economy must have the the failure of other nations. support and serve the interests of both con- All elements of our strategy are linked. sumers and producers. Therefore we in this Plans to deal with an emergency will prove Agency have committed ourselves to seek empty if we permit our dependence on im- a long-term cooperative economic relation- ported oil to mount year by year. Eff"orts to ship with the energy-producing nations. This develop a new relationship with the producers Agency has been the principal forum for our will be thwarted if we fail to create the ob- preparation for the dialogue with the pro- jective conditions for a new equilibrium ducers. through programs of conservation and the of alternative supplies. In the short term, our objective in this development the basic building blocks of our Agency has been to restore the balance in Many of remains to the international energy market. Through strategy are in place. But much ministerial meeting of rigorous conservation and the development be done. This first faces the following urgent tasks: of alternative sources, we have sought to the IE A create such a surplus of capacity that the —To impose determined conservation pro- flexibility of decision of the producers will grams before our economies begin to ex- be reduced. As our conservation policies pand again; gain momentum, our dependence on imported —To put into effect strong new incentives oil can at least be kept constant, while our for developing alternative sources; economies recover from recession. the recent —To accelerate research on long-term de- As the proportion of our energy needs from velopment of nonconventional energy sup- our own production increases, producers' the plies; and market will relatively begin to shrink, first —To prepare thoroughly for a dialogue and then in absolute terms. The producers with the producers. will have to distribute ever-larger cutbacks in turn. among themselves to maintain the high Let me deal with each of these

June 23, 1975 839 The cardinal objective of any energy pro- In January, President Ford set a goal for gram must be the limitation of growth of the United States of saving 2 million barrels consumption. However much we augment a day by the end of 1977. Later today, the our own energy production, in the medium President will announce additional measures term it cannot keep pace with the extrava- to discourage the consumption of imported gant annual consumption increases of the oil. 1960's. Together with actions already taken, this Conservation will be particularly impor- will bring the total estimated U.S. sav- tant over the next few years. Until North ings to 1.2 million barrels a day by the end Sea and Alaskan oil and additional coal and of 1977. The President hopes that the Con- nuclear power become available in quantity, gress will join him in common action to it is the only means we have to limit our bring about the remaining savings needed vulnerability. to meet our goal of 2 million barrels. But In February, we agreed that the IEA should this not prove possible, he is prepared countries should save 2 million barrels a day to use the powers available to him to assure by the end of this year. The recession has that the United States does its part in the put us ahead of that target. But the reduc- common conservation effort. tion in consumption caused by the recession We believe it essential that the lEA de- has also led to complacency about the need velop conservation goals which will prevent for a strong conservation policy. This has de- our vulnerability from increasing during layed—in America and elsewhere—the im- 1976 and 1977. Because the United States position of conservation measures that will is responsible for half the total oil consump- assure us of future savings. tion of lEA members, it pledges itself to We must recognize that most of our cur- half the savings. If, together, we can save rent savings result not from policy decisions 4 million barrels a day by the end of 1977, but from the reduction in overall economic we can prevent our collective imports of oil activity caused by the recession. During from increasing above present levels even

this spring's decline in demand for oil, the after a period of economic growth. OPEC's oil producers have absorbed the production [Organization of Petroleum Exporting cuts required to keep supply in line with Countries] ability to raise prices arbitrarily demand, leaving the basic price structure will have been diminished. And we will intact. Price rises have been difficult. But have reduced our oil payments deficit by as growth resumes in the industrial econo- many billions of dollars. But should we fail, mies, and with a normal or cold winter, our the cost will be not only higher prices but demand for oil will inevitably increase. also increasing economic and political vul- Unless we convert our recession-induced nerability. conservation to policy-induced conservation, the producers will benefit from a stronger Alternative Sources market. We will become increasingly vulnerable to price rises and the political manip- Over the longer term, our dependence on ulation of energy supply. Indeed, we have imported oil will become irreversible unless already been warned of new price increases. we rapidly develop new energy sources—oil, These would be economically unjustified, for gas, coal, nuclear power. This is all the there is much surplus production capacity, more urgent because the economic costs of inflation is slowing, and oil prices are already the current level of high prices will multiply at historic highs. Yet the market remains over time. At present, much of the pro- under the substantial control of the producers' surplus revenues are recycled into ducers; it will become more so unless we investments in the industrialized countries. impose upon ourselves a rigorous energy This is welcome as a short-term alleviation program and put immediate impetus behind of the balance-of-payments drain. But, if our conservation eff'orts. current prices hold, sooner or later the im-

840 Department of State Bulletin ports of producers will rise dramatically. nism. Only if consumers develop massive There will occur an increasing drain of goods new energy sources will the oil producers and services from our economies. lose their ability to set prices at high, arti- If we are to lessen our vulnerability, ficial levels. But these sources will not be energy production from alternative sources developed if producers retain the ability to must, at a minimum, substantially reduce thwart our energy programs by temporary, current lEA imports of 25 million barrels predatory price cuts. A minimum safeguard per day. Three actions are needed to ac- price—well below the current world price complish this: level—can help insure that these alternative sources will be developed. —We must remove or modify many of We are obviously not proposing a guaran- our governmental constraints on energy pro- teed price for OPEC. On the contrary, if our duction. Energy development is encumbered policy succeeds, and as large quantities of everywhere by legal, environmental, and reg- new energy become available, OPEC's selling ulatory limitations. Many of these reflect price could fall below the protected level. valid social goals; others could usefully be The minimum safeguard price can be im- reviewed or modified, or alternative safe- plemented in a variety of ways—through guards could be devised. We should use tariffs, quotas, or variable levies. The differ- this organization as a clearinghouse for ideas ence between the world price and the higher to remove unnecessary obstacles to alterna- domestic price would thus accrue to our tive energy sources. governments in the form of import taxes must make sure that sufficient —We and levies. These could be used for social financing is available to energy de- assure programs or rebates or other national pro- velopment. amounts of capital Enormous grams of our own choosing. In short, the will be required perhaps a thousand billion — minimum safeguard price is not a device for dollars in the next 10 years. Each country maintaining artificially high world oil prices. should decide the arrangements best suited On the contrary, it is a device for making to meet this requirement, but we should sure that they come down. And it can be establish an framework proceed now to lEA designed to yield the benefits from such re- for project-by-project cooperation, including duction to the industrial countries. joint guarantees or other financial assistance The agreed deadline for elaboration of cooperative projects. to large the lEA overall alternative sources program must insure that our energy invest- —We is July 1. We must meet it. President Ford ments are protected against disruptive com- has asked me to emphasize the urgency of petition. For much of the Persian Gulf, pro- this task. Without clear incentives for major duction costs are only about 25 cents a bar- new energy investments rapidly put into rel. Most of the major continental energy place, lEA countries can never hope to resources—new Alaskan North Slope oil, the duce their current excessive vulnerability. U.S. outer continental shelf, North Sea oil, nuclear power everywhere—will be many for Energy Production times more costly to produce. If the cartel Nuclear Power alternative sources by decides to undercut In the quest for greater energy self- predatory price-cutting, invest- temporary, reliance, nuclear power will be critical. sources be inhibited ment in alternative may By 1985, the European Community hopes pricing poli- or abandoned. The producers' that nuclear power will generate about one- cies could thus keep us in a permanent state quarter of its electricity ; Japan, a third ; the hardly have of dependence, and we would United States, perhaps a third. But there not be raised assurance that the price would are major problems associated with the confirmed. again once our dependence was orderly, safe, and prudent introduction of important new technology. This is why we in the lEA have agreed this countries, the growth of nu- in principle on the safeguard price mecha- In all our

841 June 23, 1975 clear power produces both hope and anxiety. of the risks and benefits of nuclear energy' On the one hand, we recognize it as the in line with reality. only potential large-scale energy substitute Several of the technical issues involved for the inevitable exhaustion of supplies of are already being dealt with by the OECD's oil and gas which would occur by the end Nuclear Energy Agency. That work should of this century. On the other hand, there of course continue. are increasing doubts that sufficient nuclear fuel will become available. Enormous amounts of capital will be needed to build Research and Development reactors, severely straining existing capital Beyond the next decade, a central issue markets. all of the questions And we know will be how to create new nonconventional raised by the public and some legislators energy sources. It is in developing these new regarding the environmental impact of the sources that lEA's program of cooperation widespread construction of nuclear facilities. may make its most important and lasting Thus we must move urgently and decisive- contribution. ly within the IEA on the following program: For the long-range energy future depends —We must insure that needed uranium not on the Persian Gulf, or the North Sea, or enrichment facilities are constructed on Alaska. It does depend on what we do in schedule. In this regard, the United States our laboratories to make better use of con- recognizes its responsibility to continue pro- ventional newer sources and to develop more viding nuclear fuel under long-term contract. exotic sources. Our policy is to bring into being—preferably The advanced nations have vast scientific by private industry but by the Federal Gov- and technical capabilities. Over the past year ernment if necessary—additional enrichment and a half, lEA member countries have ex- capacity which will insure adequate future panded their national programs in energy supply. Negotiations are now underway with research and development. In the United a potential private source. These discussions States our new Energy Research and De- will pi-oceed quickly, and by June 30, the velopment Administration will spend more President will decide which course of action, than $2 billion in the fiscal year beginning private or public, is in the best interests of next month. American industry will invest our own country and those abroad who rely far more than that. on us. We will then be in a position to The U.S. program emphasizes improving accept long-term orders. the efficiency of energy generation, transpor-

—We must intensify our joint efforts to tation, and use ; improving the recovery of map and analyze future demand and supply oil and new uses of coal ; and converting coal of fuel, including assessing the availability to synthetic oil and gas. These projects are of uranium resources. designed to produce major advances in ener- —We should jointly project the capital gy production and use in this century. For requirements of the nuclear sector for the the period beyond the year 2000, only three next 10 years and consider how our govern- known potential sources of energy have vir- ments, individually and cooperatively, can tually infinite potential for expansion: the assist in meeting those requirements. breeder reactor, nuclear fusion, and solar —We should evaluate the economic neces- energy. These all have a high priority in sity, plant requirements, and safety impli- the U.S. program. cations of Plutonium reprocessing, recycling, The lEA program in these fields reflects and storage. the conviction that technical advance will be —We must undertake intensive efforts to accelerated through cooperative efforts and improve the safety and security of nuclear facilitate the flow of information and knowl- materials, equipment, and operation. edge. We have decided to link our national —And finally, we should develop balanced programs through coordinated planning, in- information programs to bring perceptions tensified information exchange, and through

842 Department of State Bulletin joint projects which pool our capital, indus- to discussion and mutual accommodation. trial skills, and technology. Since its start, lEA has been committed The early results are promising. We have to the search for a new relationship with moved forward rapidly on nine joint projects the producers which would take into account ranging from energy conservation to nuclear the needs and aspirations of both sides. The power. Important programs in coal process- solidarity we have achieved in lEA is a ing, which involve substantial joint invest- necessary condition for building that broader ments of money and manpower, are about structure. to begin. Before the recent preparatory conference But a sustained program of cooperation between producers and consumers, the lEA requires much more. We have identified the agreed on several possible areas for joint existing and potential technologies that will action by producers and consumers. These have a critical impact on the future. We remain fruitful topics for dialogue: must now ascertain when these technologies — First, we should discuss the manage- can be implemented, what their production ment of financial recycling. Both producers potential is, and which are best suited to and consumers have an interest in the effec- large-scale joint projects. tive reinvestment of surplus funds. As our cooperation expands, projects will —Second, we should jointly examine the increasingly operate at the frontier of tech- incoming-investment policies of the indus- nology. We will each have to recognize that trialized countries. The oil producers need we cannot retain the most promising projects attractive outlets for their revenues; the solely for our own national purposes. We industrial countries, while they welcome new must establish guidelines which, while tak- investment, will want to retain control of ing account of understandable concern over those sectors of their economies which they the sharing of information and the possible consider critical. loss of commercial advantage, give impetus —Third, we can examine cooperative ef- to multilateral cooperation. forts to accelerate the development pro- Therefore, I propose that our leading re- grams in producer countries. New indus- search and development officials meet in tries can be established, combining the tech- early autumn at the special session of the nology of the industrialized world with the Governing Board. Their goal would be to energy and capital of the producers. Fertil-

complete the design of a joint energy re- izer is a promising example. search and development program that will Fourth, the oil-producing countries and receive high priority in all of our national the industrial consuming countries share re- planning. sponsibility for easing the plight of the poorest nations. International development efforts have been undermined by the current Relations With Producers prices for energy have economic crisis ; high for The final element of our energy strategy shattered the hopes of developing nations costs is the development of a cooperative relation- industrialization; high petrochemical ship with producers. We must face the fact have made needed fertilizer prohibitively ex- of that the producers have the ability now and pensive and compounded the difficulties the hungry. for some time to come to determine the sup- producing enough food to feed on behalf of ply and the price of our oil. But the deci- Special efforts must be made The newly sions we make now on conservation and al- those most seriously affected. an obligation ternative sources will determine whether in rich producing nations have the future prices will be set by political deci- to join us in this effort. sion or economic competition. And finally, there is an obvious need producers and con- Yet there exists no institution or agreed for a forum in which difficult issues of oil framework in which the exercise of the un- sumers can discuss the supply. This dialogue doubted powers of both groups can be subject prices and security of

843 June 23, 1975 is not, of course, a substitute for our own volume of energy in the world market should efforts on conservation and the development be members. On the commission dealing of new^ supplies. But while we cannot pro- with the most seriously affected countries, tect these vital interests only by discussions those with the lowest per capita income with producers, both consumers and pro- would participate along with traditional and ducers can benefit from a serious dialogue new aid donors. The commission on commodi- regarding their respective interests and ob- ties could include the principal exporters and jectives. importers of food and non-oil raw materials. suggest It has become clear—as a result of the We that the lEA discuss these April preparatory meeting—that the dia- concepts and coordinate our contacts with logue between the producers and consumers the countries that attended the April meeting, will not progress unless it is broadened to and especially with France as the include the general issue of the relationship convening country, to determine when and between developing and developed countries. how the preparatory meeting could be re- We in the lEA have no reason to recoil assembled. from a discussion of all the issues of concern This Agency has already demonstrated what can be accomplished if nations have the to developing countries. I recently set forth ^ my country's ideas on raw materials and vision to perceive their interest and the will commodities problems; I proposed that to act upon it. We have set ourselves im- these now be addressed in the multilateral portant goals including broadening the pat- trade negotiations, in individual commodity tern of cooperation already established here. groups, and in the World Bank. I shall put We are called upon to make concrete prog- will forward further proposals at the OECD ress ; this require readiness to look industrialized tomorrow. I hope that these ideas as well beyond our own concerns as as proposals put forward by others can help nations to the broader needs of all mankind. overcome the impasse in the producer- The progress we have made in a short consumer dialogue. 15 months should give us great hope for future. Goethe said that of The United States is prepared to have the the "The web preparatory meeting reconvene in Paris in this world is woven of necessity and chance." the same format as before. In order to carry We stand at a point where those strands its work forward, commissions should be intertwine. We must not regard necessity as created to deal with critical areas such as capricious nor leave change to chance. Neces- energy, problems of the most seriously af- sity impels us to where we are but summons fected nations, and raw materials. Each us to choose where we go. Our interdepend- commission would review the range of issues ence will make us thrive together or decline under its heading: finance, investment, trade, together. We can drift, or we can decide. We production. The commissions could meet have no excuse for failure. We have it in our consecutively or simultaneously, but without power to build a better future. an arbitrary deadline for concluding their work. The commissions on raw materials TEXT OF lEA COMMUNIQUE, MAY 27 and the problems of the most seriously affected nations would not supplant the al- Paris, 27th May, 1975. ready substantial work which is being done The Governing- Board of the International Energy elsewhere. Rather, they would monitor, sup- Agency met at Ministerial level in Paris on 27th plement, and orient that work and give it May, 1975, under the Chairmanship of Mr. Renaat needed impetus. van Elslande, Minister for Foreign Affairs of the Membership in these commissions should Kingdom of Belgium. be limited if they are to be effective. We 1. Ministers noted that the events of recent years have highlighted the importance for the world suggest that this be decided by objective economy of a regular and stable energy supply. criteria. In energy, for example, countries Solutions to current economic problems must rest exporting or importing more than a certain upon the principles of inter-dependence of all coun-

844 Department of State Bulletin tries, mutual support and shared responsibility, so be regularly reviewed within the Agency. that all countries, whatever their level of develop- 6. Ministers noted with satisfaction the progress ment, may be recognised as partners in the world that has been made in the field of conservation, in economic system. Their continued economic and particular through the adoption of a group conserva- social development must be based upon world eco- tion target for 1975. nomic growth in conditions of stability and equity. Ministers decided that the work of the Agency Ministers reiterated their determination that the should be actively continued, and agreed that gov- Agency should contribute, as far as problems con- ernments of the participating countries would need nected with energy were concerned, towards to increase their efforts to ensure that the energy achievement of these objectives. conservation objectives of the Agency are achieved. Ministers laid down as priorities for future work: 2. Ministers reviewed developments in the world energy situation since the establishment of the —the consideration of conservation objectives for Agency on 15th November, 1974. They laid down the group for 1976 and 1977; guidelines and priorities for the Agency's future —the establishment of medium-term goals for work and for the full implementation of the Inter- 1980 and 1985; and national Energy Program [lEP] and re-affirmed —the intensification of individual country reviews their commitment to work for the development of to strengthen the effectiveness of conservation a co-operative multilateral relationship among oil programmes. producing and oil consuming countries. 7. The Ministers agreed on the need to elaborate 3. They noted with approval that an emergency a co-ordinated programme of co-operation for the system has now been established to reduce oil con- accelerated development of alternative energy sumption and to allocate oil supplies in conditions sources as provided in the decision already taken by of shortage. This emergency system can be brought the Governing Board, including in particular a operation at short notice if required, and will into commitment to increase, encourage and safeguard substantially reduce the economic effects of any investment by general and specific measures. future oil supply difficulties. They noted the im- The Ministers agreed that the Agency should portance of emergency reserves to insure the effec- initiate promptly an examination of the potential tiveness of the emergency system, and noted that for expanded co-operation in the area of nuclear the Governing Board would reach a decision by 1st energy. This co-operation in all fields will be di- July, 1975, as to the date by which these emergency rected toward ensuring the development of this should be raised to 90 days supply. reserves important alternative source of energy with due the collec- 4. Ministers noted the importance of regard to safety and environmental conditions. tion and analysis of information on the oil market Amongst other questions shall be discussed the in order to ensure greater understanding and trans- availability of nuclear fuel and technology to meet parency in international oil trade. They agreed that the problems of safety and waste management. should be the oil market information system On the basis of the above mentioned decision promptly completed and evaluated. Ministers insisted on the importance of the estab- 5. Ministers confirmed their determination to lishment of co-operative projects in the research and begin the implementation of a programme on long- development fields specified in the lEP Agreement, term co-operation on energy by 1st July, 1975, with particularly coal and nuclear questions. In this con- a view to achieving the overall objectives of the nection, they agreed to build further upon the Agency by making more efficient use of the world's progress already achieved by the Agency in the limited available resources of energy in the interest area of energy research and development. They of the world economy; by diversifying the sources resolved that productive results in this area will of energy; and by reducing dependence on imported require a sustained effort to develop concrete inter- oil. national co-operation. In support of this objective, Ministers agreed that co-operation in the Long- they agreed that a special session of the Governing senior research and de- Term Program, to be equitable and effective, should Board, with attendance by in the Autumn take into due consideration the specific economic velopment officials, should be held formulation of a research and social conditions of Member countries. The pro- of 1975 to complete the gram should ensure that the burdens and benefits and development program. relations among oil deriving from joint efforts of participating coun- 8. Ministers reviewed the countries, developing tries are shared among them on an equitable basis, producing and oil consuming this in view they were and that policies directed at achieving such a and developed alike. With pressing problems of the balance should be implemented within existing aware of important and not directly related legislative and constitutional limitations. They developing countries which are determined that these further stressed that the overall efforts and under- to energy, and they were political determination and takings of each participating country with respect should be tackled with time-frame. Ministers noted to energy conservation, production of energy and within a reasonable the meeting at Ministerial research and development in the energy field should that the Council of OECD

845 June 23, 1975 level on May 28th and 29th proposes to discuss the ress that has been made in energy coopera- problems of development and of commodities, in- tion among the members of the lEA one of cluding foodstuffs, and expressed the hope that steps the most significant achievements of the re- will be taken toward effective action for finding cent period. It symbolizes the ability of the solutions to these problems. For its part, the Agency will do all within its competence to work for the industrial democracies to work together on solution of the problems of the developing coun- a common problem. They have laid a founda- tries, so far as they are concerned with energy. tion of major accomplishment in a very brief Ministers noted that the Preparatory Meeting period of time since the Washington Energy held in Paris from 7th-16th April, 1975, had pro- Conference of February 1974. vided an opportunity for full and serious discussion of the means of establishing closer relations among The meeting today and the American posi- oil producing and oil consuming countries. tion at that meeting was designed to take Ministers declared themselves ready to pursue stock of what has been achieved and to discussions at any time and in any manner found chart the course for the future. It outlined mutually convenient, and reaffirmed their common the American proposals—outlined the objec- willingness to continue the dialogue and to en- tives in field courage initiatives directed towards further the of conservation, the develop- progress. ment of alternative sources, the emphasis Ministers exchanged views on possible ways of on nuclear power, the joint efforts in re- pursuing the dialogue. They agreed to continue search and development that we believe can bilateral contacts with interested countries. They be undertaken by the lEA in the immediate instructed their representatives in the Governing future and that must be undertaken if the Board to address these questions as a matter of urgency, to co-ordinate their efforts to ensure that objective conditions that produced the ener- formal deliberations responsive to the interest of gy crisis are to be alleviated and, over a all countries concerned can be held as soon as period of time, eliminated. possible, and to examine the manner in which the We believe that these objectives are with- dialogue should be continued. in our capacity to achieve. An important 9. Ministers agreed that the work carried out in the Agency thus far has made an important con- aspect of our view and that of our colleagues tribution towards meeting the difficulties that have in the lEA has to do with producer-consumer been encountered in the energy field. They stressed relations, and this has to be seen in the con- of the solidarity the Member the importance among text of what we shall do at the OECD tomor- countries, and emphasised the need for an intensifi- row, mainly to sketch a new and, we hope, cation and, wherever possible, a broadening of constructive approach to the relationship co-operative efforts undertaken in this area. Acting in its operational capacity, the Agency will con- between the industrialized countries and the tinue to develop further its co-operative energy developing countries. programme in order to improve the overall energy With respect to the consumer-producer supply and demand situation, which is of vital dialogue, we have proposed a means by which importance to the further development of the world economy as a whole. the stalemate of the last conference can hopefully be overcome, by which it is possible to have discussions on energy which take NEWS CONFERENCE, MAY 27 place concurrently with discussions on raw materials and development in probably dif- Press release 304 dated May 28 ferent forums that are related to each other

Ladies and gentlemen: I will just make a but where each works on its own schedule. very few remarks. The series of meetings Together with the specific proposals that that are taking place this week, at the lEA we have made with respect to raw materials today, the OECD tomorrow, followed by the previously and that we shall elaborate to- NATO summit, represent a kind of archi- morrow, we hope that the possibility has tecture of the structure of the world as we been created for a constructive dialogue be- can foresee it developing. tween consumers and producers on energy I will not talk about the NATO summit and between industrialized and developing today. I will make a few remarks about the countries on a local basis. This is the ap- lEA and the OECD. We consider the prog- proach that the United States is putting

846 Department of State Bulletin forward, which we believe has the substan- many cases do not agree with their solu- tial support of our partners, it and offers tions—we are willing to listen to their con- hope for in field progress the of energy and, cerns, to discuss them, and to try to find we hope, for a constructive dialogue with the equitable answers. developing countries. The particular procedure that we have Q. Mr. Secretary, the commissions you proposed is not intended to postpone the proposed today, are they entirely discussion solution, but rather to accelerate it. If every-

(l)-inips and, if not, lohat else would they do? thing were discussed in one commission or in one conference, it would be incapable Secretary Kissinger: The commissions we of being brought to a point. By discussing it proposed—three commissions, although we in separate commissions, each of which can are openminded on this, on energy, on raw then review the work that may already be materials, and on development—these com- going on in other forums, but supplement missions are to review the whole range of it when that is necessary, we believe we have problems in their fields. In the case of energy, proposed a procedure that can lead to as the commission should be, in effect, the ener- rapid a conclusion as the technical complex- gy conference. In the case of raw materials ity of the subject permits. and development, there are other negotia- Our intention was not to put it into the tions going on in other forums, and the role distant future but to come forward with a of these commissions would be to pull to- proposal that is something other than a gether the work in these other forums, to huge meeting like the special session of the monitor it, to orient it, and therefore perhaps General Assembly and is specific enough to the emphasis in each group would be some- meet the concerns of the developing coun- what different. But we are not looking at tries as well as reflect our own interests. them as simply discussion groups, but as groups that will contribute to the solution of Q. Mr. Secretary, how do yoti explain the the outstanding problems. change in opinion since last April [in the United States, regarding commodities] ? Q. Mr. Secretary, hoiv do you respond to the reactions you are hound to get from Secretary Kissinger: You have to separate some of the producing nations that this two things. One is the attitude we took at merely postpones coming to grips with the the producer-consumer conference, and we issues and that it puts the discussion off are still opposed to discussing energy de- into the distant future? velopment and raw materials all in one big

Secretary Kissinger: First of all, I do not meeting. But we are not opposed to dis- believe that this is the reaction that we will cussing them in a way where their relation- get from the producing nations, because we ship is established. So we have not in this have had some preliminary talks with at respect changed our view totally. least some producing nations in which that With respect to the second, we have had particular view—in which that particular a study in our government looking at the criticism was not raised. problem of raw materials which has been

Secondly, if it were raised, it would not going on for months and which came to be a valid criticism, because in our govern- fruition in recent weeks. That study had ment, as is well known, there was a rather always been pointed toward the time of the firm objection to discussing the issue of raw OECD meeting and the special session of materials at all, and therefore the readiness the General Assembly. of the United States to discuss raw materials With respect to this, what the United within the framework that we have proposed States wants to do is to show its willingness, is a step that was deliberately intended to as I pointed out, to discuss issues that are tell the developing nations that we were of great concern to a major part of mankind. listening to their concerns and that while we We will not necessarily accept their views may not agree with their solutions—and in on the specific remedies. We, for example,

June 23, 1975 847 are not in favor of indexation, but we have the theme of my speech at OECD tomorrow. turned attention to the relationship between Q. With respect to the conference in the industrial and developing countries. This Geneva on the Middle East, what is your is not a change and is not sudden. It has expectation about it? been in preparation for months as a result Secretary Kissinger: With respect to the of a series of interdepartmental studies, and conference at Geneva. As you know, Presi- it was just brought to a focus at this mo- dent Ford is meeting President Sadat this ment. weekend. He will subsequently be with Prime Q. Mr. Secretary {Inaudible. In substance, Minister Rabin. Until those discussions have

asks if the Secretary has received support been completed, it will be difficult for us to for his approach in bilateral discussions with make a judgment when the Geneva Con- any major OPEC nation]. ference can be resumed. I have stated pub- believe that the Secretary Kissinger: Yes, we have. I do licly that we Geneva Con- is of the present not want to embarrass any OPEC country, ference a probable outcome and obviously they are going to make their evolution. own decisions, but we have had exploratory I am also planning to meet again with talks with a number of OPEC countries, and Soviet Foreign Minister Gromyko, probably in July. At that point will be my impression is that this general approach we able to give clearer view to will find some support. In fact, it has found a as when the Geneva support among the countries with which it Conference is likely to be reassembled. was discussed, which is, however, not all the Q. In what time frame would you put the OPEC countries. resumption of the preparatory conference?

Q. Mr. Secretary, what ivould be the re- Secretary Kissinger: We have had a pre- lationship between various commissions? liminary talk today with our partners in the Would progress in one commission depend lEA, and I had the impression, although I on progress in other commissions? do not think any formal decision has yet been taken, that the general approach out- Secretary Kissinger: In our view that is lined was favorably received. We will, of not necessarily the case. As I understand course, be in close touch after completing the view of at least some of the OPEC coun- our discussions in the lEA with the Govern- tries, their view was not that all work had ment of France, as the convening country; to be concluded simultaneously, but that they and we would of course expect that France wanted to make sure that we would not talk would again act as the convening country. only of the commodity that concerned us We set no exact time frame, but we have no while all other issues were left for some particular reason for delay either; so some- indeterminate future. Therefore, each com- time over the next few months I believe that mission should set its own pace, and its con- the time would be appropriate. clusions should not necessarily be dependent on the conclusions of the other commissions. Q. Do you believe that this new American But no doubt as the work develops there proposal ivill head off an oil price increase will be opportunities for exchanges of views in September? between the commissions, and I think we Secretary Kissinger: Well, the oil price should keep an open mind as this work con- increase, the projected oil price increase, de-

tinues. The point I want to make is that the pends of course on many considerations. We United States is prepared to make a serious cannot gear our negotiations to an attempt effort with good will and a cooperative atti- to head off an oil price increase. tude to deal with these problems and that The U.S. position is that an oil price in- we are calling on the developing countries crease would be economically unjustified, in the energy field and on the producing that oil prices are at historic highs, and as countries to avoid confrontation and to deal recent studies have shown, that the price of with the practical problems. That will be other raw materials has not been out of

848 Department of State Bulletin ; line. So we would oppose an oil price in- producers. We have no reason to hold up ci ease, and we hope that the OPEC countries the resumption of the preparatory confer- will reflect further on the impact on the ence. Sometime in the next months, with an world economy of a continual increase in oil "s" at the end; and that's what I intended prices. to say this morning.

Q. [Inaudible. In substance asks why the Q. Following President Ford's discussion Secretary did not mention the U.N. Confer- with President Sadat in Salzburg and Prime ence on Trade and Developtnent in his lEA Minister Rabin in Wasliington, do you plan speech, and if he opposes an UNCTAD role to go back to the area for a new shuttle in dealing ivith the commodity problem.] diplomacy ?

Secretary Kissinger: With respect to com- Secretary Kissinger: Well, the method of modities? These are the specific proposals the diplomacy is not what is crucial, and it that we have put forward. We are prepared depends, of course, on what progress is made to examine other forums where this might and toward what particular end. The United be considered. States has not excluded any particular approach. On the contrary, we are prepared Q. Mr. Secretary, you spoke at the outset to pursue any approach that makes progress of developing a kind of architecture to stmc- toward peace. We have excluded a stalemate ture the ivorld as we can see it develop. In of any duration. So in principle we are pre- yoicr talks this morning with the French pared to be helpful in whatever direction the President, did you find him lookiyig at the parties concerned believe would be most use- same structure, or did he have a housing ful to them. plan of his own?

Secretary Kissinger: Well, I think that France prides itself on its independent for- STATEMENT BEFORE THE MINISTERIAL eign policy. Obviously, we have no objec- COUNCIL OF THE OECD, MAY 28 tions to France having an independent foreign policy. On the whole my impression Press release 302 dated May 28 was of a considerable mutuality of approach. nations join forces for the There could be occasional differences in tac- When free good they can achieve great tics. There might be a difference in emphasis, common things. but I thought on the overall approach that organization embodies the legacy and the talks were very satisfactory and were This of the Marshall plan, one of the conducted in a very constructive and posi- the hope creative achievements of international tive atmosphere. most collaboration. The nations represented here Q. Mr. Secretary, I notice that there is have every reason to be proud of the ad- some change in the time frame; when you vances which they have achieved for their spoke it "a this morning, I believe was peoples during the past 30 years. Our prog- month," noiv "a and you are speaking of ress has fostered global progress. Our suc- feiv months." cess has demonstrated that hope, prosperity, are not Utopian dreams Secretary Kissinger: It could be a question and human dignity possibilities for of my accent—that you did not hear the "s." they can become practical Nothing has changed between what I said all nations. economic system which we labored this morning and what I said this after- But the construct is now under stress. noon. We are prepared to begin discussions so hard to of 1973 first dramatized immediately. We are in discussions now The energy crisis change which threaten to out- with our lEA partners. We will be discussing the forces of for cooperative action. A in the near future after conclusions have run our capacity global recession, and a rate of been reached with the Government of France food crisis, a unprecedented in the postwar pe- and will continue exploratory talks with the inflation

849 June 23, 1975 ; riod have further strained the structure of ingly base our policies on the recognition international cooperation. At the same time, that growth in the industrial world is inex- the poorer nations have increasingly pi-essed tricably linked to our relationship with the their demands for greater benefits and more rest of the world. participation in the international system. We thus face two important challenges: Economic expansion in the industrial — First, the challenge to the nations of and economic cooperation with the world the industrial world to restore sustained and developed countries go hand in hand. less stable economic growth, so essential to main- Only economic growth can satisfy competing tain confidence in their institutions. demands for more income and more oppor- —A challenge to all nations to improve; tunity within and among countries. An ex- the system of international economic coop- panding world economy is essential for de- eration, and thus provide greater oppor- velopment. It stimulates trade, investment, tunity for the less developed countries to and technology; it supports neces.sary bi- share both the benefits and responsibilities lateral and multilateral aid programs; it of a growing world economy. assures growing markets for the raw materials, manufactures, and agricultural prod- The industrialized nations are now experi-

ucts of the developing countries ; it provides encing the most serious economic crisis since the best framework for accommodation on the Great Depression of the thirties. We

the difficult, potentially divisive issues of see it in widespread recession. We encounter

food, energy, raw materials, trade, and in- it in the inflation that has become the bane vestment. of our societies. We note it in the increasing These issues go far beyond economic con- difficulty of governments to manage their siderations. Economic stagnation breeds economies and even to control their budgets. political instability. For the nations of the We observe it in the declining incentives to industrialized world, the economic crisis has investment that many of the industrial de- posed a threat to much more than our na- mocracies are willing to off'er. tional income. It has threatened the stability We see now how much all our social and of our institutions and the fabric of our economic objectives depend on the general cooperation on the range of political and trend of prosperity. A democratic society security problems. Governments cannot act thrives on a political and social consensus. with assurance while their economies stag- The distribution of economic benefit must be nate and they confront increasing domestic broadly accepted as just or as offering op-

and international pressures over the distri- portunity for those who seek it. Otherwise bution of economic benefit. In such condi- escalating wage and price demands, lagging tions, the ability to act with purpose—to work performance, and labor unrest will un- address either our national or international dermine productivity; and inflation, which problems—will falter. If they are to con- destroys growth and shatters hope, will be tribute to world security and prosperity, the the arbiter of social priorities. Stagnation industrialized nations must be economically magnifies all our difficulties; stable growth strong and politically cohesive. enhances our possibilities. The Organization for Economic Coopera- The Finance Ministers, meeting tomorrow, tion and Development reminds us of our will discuss specific measures to achieve our strengths. It calls attention to the wisdom goal. Secretary Simon will then describe in of our predecessors, who saw that we multi- detail the trend of American economic re- ply our eff'ectiveness by our cooperation. covery. Today, let me off"er some general This organization was originally created to propositions about our long-term future. promote cooperation among those few na- Our first task is to rebuild confidence tions which were already most advanced. through decisive, coordinated, and mutually This is still a worthwhile objective, but to- supportive action to promote sustained ex- day's realities demand that we also increas- pansion. We must recognize, especially in

850 Department of State Bulletin : the short- and medium-term management of —How can the industrial nations bring our economies, that the economic policies of about the massive capital formation required one nation can have a profound impact on over the next decade for an adequate rate others. And the United States, because of of growth and for a new quality of life? the size and impact of its economy, has a —What policies are needed to restoi-e a particular obligation to recognize the mag- noninflationary environment, without which nitude of its responsibility. long-term growth cannot occur? In the past we have kept each other in- —How can we encourage the research and formed on short-term policy measures. In development necessary to advance the tech- a new departure, this past winter President nology vital to growth and to share it with Ford consulted with Chancellor Schmidt [of others? the Federal Republic of Germany], Prime To begin the search for answers to such Minister Wilson [of the United Kingdom], questions, I propose that we con.stitute a President Giscard d'Estaing [of France], special group of distinguished economists and former Prime Minister Tanaka [of both in and out of government. Their pur- Japan] on our efforts to combat the reces- pose should be to identify measures that sion. The major industrial countries need to OECD nations can adopt to assure long- do so. It will greatly improve the chances term growth. This group should draw on avoiding the sequence of and bust of boom the projections now being developed within experienced these last three years. The the Economic Policy Committee and turn United States is prepared to cooperate fully them into policy recommendations for the in such efforts. next ministerial meeting. Second, we must collaborate to sustain the The importance of our economic coopera- growth of international trade and invest- tion transcends immediate economic utility; ment. The great postwar effort to liberalize it also fosters our sense of community and trade, to lessen barriers to investment, and common interest. If we are to cooperate in to maintain free monetary exchanges has times of political and military crisis, we nourished our prosperity for over a genera- cannot, in calmer periods, afford to be eco- tion. Trade has consistently expanded at a nomically weak, or disunited, or preoccupied rate twice that of our domestic economy. with clashing economic interests. The inter- this in We must carry momentum forward relationship of our political, economic, and the OECD by renewing our pledge not to security interests which the United States resort to restrictive to cover trade measures suggested two years ago is a fact, not a deficits resulting from current world eco- theory. nomic difliculties. And we must take advan- Moreover, eased relations with the Com- tage of the multilateral trade negotiations munist world presuppose the political unity to lower tariffs and nontariff barriers and and economic vitality of the industrialized improve the world trading system. countries. The East's incentive to play a re- Third, as I outlined yesterday in the lEA, sponsible role in the world economy and to we must collectively adopt strong national improve political relationships with the in- and international policies on energy conser- dustrialized nations will be enhanced as its vation and the development of alternative stake in our economic success grows. This energy sources. This is indispensable if we has been one of the more hopeful trends of are to lower prices and inhibit the political recent years and it is up to us to assure its exploitation of a scarce resource. We must continuation. end, or at least reduce, the vulnerability of our economies to external economic or politi- Cooperation With the Developing Nations cal manipulation. crucial issue Finally, we must develop longer term Let me now turn to another industrialized growth strategies by systematically address- the relationship between the ing some fundamental questions: nations and the developing world.

851 June 23, 1975 — The world's prosperity will depend pri- advantaged—those in whose name and for marily on the industrialized nations since we whose benefit these tactics are pui'portedly account for 65 percent of the world's output used. and 70 percent of its trade. But our eco- It is time to end the theoretical debate nomic well-being depends on a structure of over whether we are seeking a new order or international cooperation in which the de- improving the existing one. Let us deal in veloping countries are, and perceive them- reality, not rhetoric. Let us address the prac- selves to be, participants. The new prob- tical common concerns of all the world's lems of our era—insuring adequate supplies peoples with realism, maturity, mutual un- of food, energy, and raw materials—require derstanding, and common sense. The United a world economy that accommodates the in- States welcomes a dialogue in that spirit. terests of developing as well as developed We will do all we can to make it succeed. countries. Simple labels falsify the many real com- We in this organization all face the same munities of interest which exist—some over- challenge, and we must face it together. lapping, some competitive, some comple- The political evolution and economic growth mentary. One of the striking features of of the last 30 years have brought about a the modern world economy is the diversity new diffusion of power. No nation or bloc of its participants. Among the countries can dominate any longer. Economic issues formerly classed as "developing," there have are turning into central political issues. Thus emerged in the last decade new economic it has become a central test of statesman- powers with a growing capacity to export ship to insure the orderly reconciliation of manufactures and raw materials. The most conflicting interests and to prevent a slide successful have fostered investment and into political and economic warfare. Mis- growth at home. To these emerging powers used economic power—as the past two years have now been added the oil-rich countries. have borne stark witness—can reverse the Any nation with a moral claim to world trend of worldwide growth and retard prog- leadership—we as well as the newly wealthy ress for everyone. An international system •—must contribute to easing the plight of will be stable only so long as its economic the poorest countries. For who can deny benefits are widely shared and its arrange- that every economic problem—stagnation, ments are perceived as just. The United inflation, high energy prices, food shortages States, and I am sure all of us in this room, —hits them hardest? are ready to seek solutions to the problems The United States recognizes the responsi- of international cooperation with imagina- bility that accompanies its economic power. tion and compassion. We are prepared to do our part, in a spirit

But it is evident that others must be ready of equality, mutual respect, and cooperation. to follow a similar course. Confrontation Yesterday I discussed our proposals for and cooperation cannot be carried on simul- achieving a successful multilateral energy taneously. International meetings that ex- dialogue. Today let me turn to food, raw haust themselves in self-indulgent rhetoric materials, and trade and finance. A break- or self-righteous propaganda help no one down of the system in these areas would and no cause. We do not consider it construc- foster economic chaos and instability. Suc- tive to participate in such exercises; we have cessful collaboi-ation could usher in a new era a clear interest in resisting bloc pressure tac- of economic advance and human progress. tics or attempts to impose solutions through hostility. Such methods are futile and coun- Food A Moral and Political Challenge terproductive. If the terribly complex issues before us are to be resolved through tests The global problems in food are a central of strength, it is not the advanced industrial moral and political challenge. A world order powers who will pay the highest price. In- in which tens of millions starve and millions stead, it will be the poorest and most dis- more are undernourished will never be ac-

852 Department of State Bulletin cepted as just. The good harvests expected The link between funding and effective this year should not make us complacent, agricultural development strategies should for the world's total food requirements con- be provided by a second organization, the tinue to grow dramatically. The gap between Consultative Group on Food Production and what developing countries can produce and Investment, which has already been orga- what they need currently amounts to about nized as a result of the World Food Confer- 25 million tons. At current rates of produc- ence. This Group, sponsored by the World tion and population growth, that gap is ex- Bank [International Bank for Reconstruc- pected to double or triple in 10 years. Un- tion and Development (IBRD)], the U.N. less we act now, the world may face a series Development Program, and the Food and Ag- of increasingly unmanageable food crises riculture Organization, plans its first meeting over the next quarter century. in July. It should be the central mechanism For the short term, food aid will continue for cooperation among traditional donors, to be vital to feed the victims of poverty new donors, and the developing countries. and natural disaster. It is an international A crucial element in a long-term food responsibility—to be shared by all finan- strategy is grain reserves. Short-term fluc- cially able countries. The United States has tuations in food production, due to weather pledged that it will make every effort to or natural or other catastrophes, cause sharp provide at least 4 million tons of food aid swings in price and availability of precious annually. grains and cause plagues of starvation. A

But this will not be enough. A long-term system of grain reserves would make it pos- solution to the food problem requires that sible to alleviate famine in bad years as world food production capacity be greatly well as reduce pressures on supply and increased, especially in the developing coun- markets. tries, and an international system of grain At the Rome Food Conference we agreed reserves be created. to negotiate a new international system of Let me turn to the U.S. proposals in these nationally held grain reserves. I recently areas. outlined the suggested principles for such Fortunately, the less developed nations a system which the United States is prepared which are in greatest need also have the to begin negotiating immediately: greatest potential for increased production. —First, total world reserves must be large They possess large quantities of unused enough to meet potential shortfalls in food- water and cultivatable land and the greatest grains production. possibility for improvement in crop yields. —Second, grain exporters and importers Their success, however, requires vast should agree on a fair allocation of reserve amounts of capital, new methods of planning holdings, taking into account wealth, produc- and funding, and more effective agricultural tive capacity, and volume of trade. policies and practices. —Third, there should be agreed interna- To these ends, the United States supports tional rules or guidelines to encourage mem- two new international mechanisms: bers to build up reserves in times of good First, the International Fund for Agricul- harvest. tural Development—this Fund, proposed by —Fourth, each participating country the oil-producing nations, is designed to should be free to determine how its reserves bring together all nations who are prepared will be maintained and what incentives will to contribute additional resources, over some be provided for their buildup and main- agreed base year, to agricultural develop- tenance. ment. President Ford has asked me to an- —Fifth, rules or guidelines should be nounce that the United States will partici- agreed for the drawdown of reserves, trig- pate in the creation of such a fund. We gered by shortfalls in world production. that all believe its resources should total at least There must be a clear presumption $1,000 million a year. members will make reserves available when

June 23, 1975 853 needed and, conversely, that reserves will tiations now taking place in Geneva. not be released prematurely or excessively, —Second, we do not believe that exclusive thereby depressing market prices. producers organizations are the best way —Sixth, in times of shortage the system to solve the commodity problem. In our view must assure access to supplies for participat- consumers and producers should jointly ing countries. discuss their problems and possible remedial —Seventh, there must be special provi- actions. We are prepared to do so. Spe- sions to meet the needs of the poorer coun- cifically we are ready to discuss new ar- tries. rangements for individual commodities on a —Finally, the system must encourage ex- case-by-case basis. We have already made panded and liberalized tirade in grains. proposals for a new International Coffee Agreement. We are ready to discuss other The United States is prepared to hold an commodities as circumstances warrant. important part of an agreed level of world —Third, I have recently suggested that the reserves. If others join us, agreement on World Bank increase its financing of re- the outlines of a reserve system can be source investments and explore new ways achieved before the end of the year. of combining its financing with private management, skills, technology, and capital.

Commodity Issues, Trade, and Finance —Finally, for most less developed countries, the key issue is the need for reliable A second area of increasing concern is long-term stability and growth in export commodities. The time is ripe for a detailed earnings. Proposals have been made to re- look at problems of commodity trade—for view mechanisms for the stabilization of solutions that will benefit producers and con- earnings, notably that of the IMF [In- sumers alike. The current system is marked ternational Monetary Fund] to protect the by volatile prices, disruption of supplies, in- developing countries against excessive fluc- vestment disputes, and increasing hostility tuations in their export income. We are to the private capital investment which re- prepared to join others in this effort. mains indispensable for the transfer of re- Others here will have their own views sources and management skills. on how to proceed and on new ways of Thus consumers as well as producers have addressing the concerns of the developing an interest in effective arrangements. The nations. Cooperative action among the in- consuming nations seek reliable supplies and dustrialized nations will multiply the effec- prices. The producing countries seek reli- tiveness of our individual efforts and will able and growing export earnings to finance insure that we have a clear understanding of development and an adequate return on in- common needs. The United States therefore vestments. All nations share an interest in strongly supports the OECD recommenda- ending the friction which characterizes the tion of a high-level group to study proposals issue of raw materials. The debate is be- on commodities. coming more polarized and has already dam- The traditional areas of international eco- aged other efforts for international coopera- nomic cooperation, trade and finance, remain tion. The failure of the preparatory energy central elements of the economic structure. conference last month is but a symptom of We cannot adequately provide for new areas the larger problem we now confront. The of cooperation unless we first assure that longer we delay, the more difl^cult and pain- the trading and monetary system is func- ful it will be to find solutions. tioning effectively. While the present sys- The United States offers the following sug- tem has come through the last few years

gestions : quite well, two problems stand out: —First, we propose that new rules and — First, developing countries with large procedures for access to markets and supplies and growing industrial sectors, particularly be negotiated in the multilateral trade nego- in East Asia and Latin America, require

854 Department of State Bulletin expanding markets for their manufactured presents such an opportunity to shape our goods. The Tokyo Declaration's pledge to future. We are summoned to seize the possi- provide improved access to industrial world bilities inherent in the new era which the markets for developing countries must be whole world is now entering. We should implemented urgently for these countries.- be confident and not timid; others are seek- And they should be given an opportunity to ing to join in what we have built. Our participate in the negotiations. challenge is to encourage progress and not —Second, the poorest countries are badly abstract ideological confrontation. With in need of additional financial help. They this attitude we can look forward with opti- now bear a double burden of higher prices mism to the major international delibera- for imported energy, food, fertilizer, and tions before us such as the seventh special industrial goods and of reduced export earn- session of the U.N. General Assembly this ings due to worldwide recession. We there- fall. fiire support the creation by 1976 of a spe- Politically as well as economically, our era rial trust fund of up to $2,000 million under has been shaped by the Industrial Revolution

the IMF. We have proposed that gold now and the progressive economic growth that it held by the IMF be supplemented by other brought. Its impact has been rapid, its re- contributions, especially from oil producers, sults prodigious, its efi'ects remarkable. It and be used to provide resources for half of has created a new age of well-being and this total. I hope that the countries of the helped rapid economic growth, which was OECD could put this proposal forward for confined to Western Europe and the United action at the meetings of the IMF Interim States a century ago, expand into many parts Committee and IMF-IBRD Development of the globe. Committee two weeks from now. At home, this economic progress has been an essential underpinning of our democra- In short, we propose to base the relation- is the basis of stable, progressive, ship between developed and developing na- cies. It a and just political and social environment. tions on a spirit of cooperation and good The new nations now striving to indus- will. We urge the developing countries to have, with our help, a similar oppor- approach the issue with the same attitude. trialize tunity. We have every reason to expect sim- We must all realize that the actual diversity success in working together with them of parties and interests demands a variety ilar on the new challenges of food, raw mate- of responses, that no single solution can be rials, and energy. But progress will not adequate, and that cooperation among the happen automatically. parties most concerned is the most effective depends on our determina- means of addressing common problems. So a great deal There are no plateaus in The United States welcomes the Secretary tion and vision. of mankind. What is not a step General's proposal for a comprehensive re- the affairs best stagnation; more often, view of our economic relationships with de- forward is at it is a pause before retreat. There is no veloping countries. We also support the pro- be dismayed by the problems we posal of the Government of Japan for a need to for progress implies problems. Circum- major study within the OECD of the longer face, stances have already provided the nations I'un development of the advanced industrial of the world with a unique perception of societies in harmony with the less developed their interdependence. The opportunity to

! countries. write a new and enduring chapter in the It is not often in history that a funda- story of international cooperation is up to us. mental challenge is so clearly visible and We are prepared to respond to the im- have the awareness, ^ For text of the declaration, approved at Tokyo peratives we face. We us on Sept. 14, 1973, by a ministerial meeting of the the tools, and the determination. Let Agreement on Contracting Parties to the General now resolve to build the new era that our TariflFs and Trade (GATT), see Bulletin of Oct. 8, times demand. 1973, p. 450.

855 June 23, 1975 TEXT OF OECD COMMUNIQUE Trade AND DECLARATION 4. Ministers ' decided to renew, for a further period of one year, the Declaration adopted on 30th stating the determination of all OECD Communique May, 1974, governments to avoid recourse to new restrictions Paris, jnth Maij, 197^. on trade and other current account transactions and the artificial stimulation of visible and current in- at Ministerial 1. The Council of the OECD met visible exports. In renewing the Declaration, Minis- chairmanship of the level on 28th May, under the ters stressed that the present situation required a MP, United Right Honourable James Callaghan, high degree of economic co-operation. Noting that Foreign and Com- Kingdom Secretary of State for there had been a marked difference in the balance-of- with the monwealth Affairs, and on 29th May, payments situations of OECD Member countries, United Right Honourable Denis Healey, MBE, MP, they welcomed the economic measures taken by the chair. Kingdom Chancellor of the Exchequer, in certain of them; and they reaflirmed that, in the present state of the world economy, it remained of The Economic Situation the highest importance to follow an economic policy poli- 2. Ministers expressed confidence that the which combatted inflation but also aimed at main- cies of OECD governments will lead to a recovery taining a high level of employment and expansion will of demand and emi)loyment and that this be of world trade. The way in which this policy should combined with further reductions in the average be implemented must take account of the respective rate of inflation. They are determined to achieve situations of Member countries. adjustments these goals, and to ensure, by timely 5. Ministers agreed that, given the importance of should of policies, that the recovery is under-pinned the terms of export credits in international competi- this prove necessary, and that, once under way, it tion, an arrangement of a general nature in this does not degenerate into a new period of excessive respect, between as many as possible of the indus- demand pressures and inflationary tendencies. Min- trialised countries of the OECD, should be achieved. isters noted that the substantial international pay- This would constitute significant progress in inter- ments deficit on current account of OECD countries national co-operation. They also agreed on the need as a group, which has recently declined, is never- to continue close consultations on exchange-rate theless likely to persist for some years. They also developments in the appropriate bodies. They noted underlined the importance of ensuring that economic that the problems of the developing Member coun- policies are such as to secure, among OECD countries have become more serious in several respects tries, a less unbalanced distribution of current during the past year, and deserve to be considered account positions, more compatible with a sus- with special attention within the OECD. Given such policies. tainable pattern of capital flows. 6. Ministers reaffirmed that liberal and expanded Ministers were confident that, backed by oflicial trade was of the utmost importance for the further bilateral and multilateral arrangements, the financ- development of the world economy and that, to this ing of existing and prospective deficits could be end, they would work together for the success of continued on an orderly basis; in this connection the multilateral trade negotiations now under way. they welcomed the steps being taken to obtain early Encrgii ratification of the agreement establishing the OECD Financial Support Fund. 7. Ministers stressed the importance they attached to continuing and developing co-operation in 3. Ministers stressed that policy decisions con- the field of energy. report from the Belgian cerned with the immediate future had to be related A Foreign Minister, Mr. Renaat van Elslande, Chair- to the foreseeable medium and longer-term problems man of the Governing of the International of structural change, and to broad strategies for Board Energy Agency's Ministerial level on 27th resolving them. Ministers agreed that the OECD meeting at May, described the and the nev.- should carry forward and accelerate its re-assess- progress being made impulse given to energy co-operation within that ment of the prospects for sustained economic growth and the constraints on such growth, particularly body. increased co-operation those arising from inflation, under the changing cir- 8. Ministers agreed that cumstances. They noted with interest the proposal between producer and consumer countries was stable con- made by the United States Government that a num- needed in order to ensure equitable and ber of economists of international repute should be ditions in the world energy market. invited, drawing on this work, to examine the policy Commodities issues and In a broader and make recommendations. 9. Ministers stressed that adequate supplies of in- longer run context, Ministers also noted with commodities at equitable and remunerative prices terest a proposal initiated by the Japanese Govern- ment for a study of the future development of ' The Government of Portugal is not, at this stage, advanced industrial societies in harmony with that in a position to renew the Declaration. [Footnote in of developing countries. original.]

856 Department of State Bulletin are essential to the world economy. They recognised impetus to negotiations in other bodies working on the interdependence and common interest of pro- specific problems. Ministers invited the ad hoc high- ducers and consumers, both developed and developing level Group which has been created for this purpose countries, particularly in relation to the avoidance to begin its work as quickly as possible and to sub- of excessive fluctuations in commodity mit markets, as a preliminary progress report before the end well as the importance attached by producers to as- of July 1975. sured access to markets and by consumers to secure 14. Ministers agreed on the need to continue the supplies. These questions, together with other dialogue between developed and developing coun- aspects of the commodity problem, are of special tri»s. They recognised that, concurrently with the concern to the developing countries in making the problems of energy and oil, there are other prob- lipst possible use of their natural resources to foster lems such as commodities, including foodstuffs, de- economic development. velopment questions and the intensified difficulties 10. In responding to the concerns of developing of the most seriously affected countries, which will countries in the commodity field and while recognis- have to be tackled with increased vigour in co- ing that circumstances vary greatly between com- operation with all countries concerned. The need for modities or groups of commodities and that this renewed efforts along these lines was a recurring must be taken into account when working out prac- theme throughout the meeting of the OECD Min- tical arrangements. Ministers agreed on the need isters. Ministers expressed the hope that their for a more active and broadly based approach to deliberations will have provided a basis for the commodity problems aiming in particular, at: resumption at an early date of the dialogue which was initiated in Paris last April. —reducing market instability and promoting a better balance between production and consumption, OECD Declaration on Relations including, where appropriate, through commodity With Developing agreements; Countries —ensuring adequate levels of investment in pro- Paris, 28th May, 1975. duction of commodities; 1. Ministers of OECD Governments meeting in —improving and increasing market outlets and Paris on 28th May, 1975, discussed relations with local processing of commodities. developing countries and agreed that, in the present In addition. Ministers indicated their readiness to situation, the widest measure of international co- consider improved international mechanisms to operation is required. stabilize e.xport earnings of developing producing 2. They considered that while many developing countries. countries have made major progress in their eco- 11. Ministers stressed the need for progress in nomic and social development, a large number of the various international discussions on grains. In them have not been in a position to advance suf- this context they noted that the better agricultural ficiently and many are still faced with extremely crops expected this year offered the opportunity to severe problems of poverty. begin rebuilding stocks of essential foodstuff's, 3. Recalling the contribution which their coun- notably grains, and to ensure greater world food tries have made to further the economic development security. Ministers also re-iterated their readiness of the developing countries, Ministers resolved to to contribute to the efforts needed to increase food intensify their efforts to co-operate with these coun- production in the developing countries. tries in their endeavours to improve the conditions of life of their people and to participate increasingly in 12. Ministers agreed that these questions should the benefits of an improved and expanding world be pursued actively in all appropriate bodies with a view to reaching concrete solutions based on co- economy. economic interdepend- operation between producing and consuming coun- 4. Given the fact of world believed that progress could best be made tries. They welcomed the establishment of a high ence, they through practical measures which command wide level group in the OECD to further develop Member all concerned developed and de- countries' attitudes both on general aspects of their support among — veloping nations alike. commodity policies and on specific action concern- consider policies aimed at ing particular commodities. 5. They determined to strengthening the position of the developing coun- Relations with Developing Countries tries in the world economy and expressed their with developing countries 13. Ministers adopted an OECD Declaration on willingness to discuss the Relations with Developing Countries (annexed to the relevant issues, with particular emphasis on and develop- this Communique). They further agreed on a review food production, energy, commodities seriously affected within the OECD of economic relations between ment assistance for the most Member countries and developing countries, with countries. firm determina- a view to identifying what new and other construc- 6. They therefore expressed their with the developing tive approaches could be adopted on selected sub- tion to pursue the dialogue appropriate fora, in particular the stantive issues, and to giving support and new countries, in all

857 June 23, 1975 forthcoming Seventh Special Session of the United have been discussed here, namely, the new Assembly, in more restricted Nations General and problems that we are all facing—energy, fora along the lines suggested by the President of economic cooperation, relations with the the French Republic, in order to make real progress newly developed countries. And he will take towards a more balanced and equitable structure of international economic relations. up relations with the East, how detente fits into this whole structure.

Mr. Koppel: How about the internal prob- REMARKS FOLLOWING MORNING SESSION lems of NATO—for example, Portugal, the OF MEETING, 28^ OECD MAY problems between Turkey and Greece?

Secretary Kissinger: As you know, he is Mr. Koppel: Could you tell us something spending tomorrow morning with the Greek about the kind of mood you have foiind and Turkish Prime Ministers. These sub- among European leaders? What will the are jects that will come up more in bilateral President find on his trip? meetings than in the formal sessions. Secretary Kissinger: I think the President will find a very constructive mood of friends wanting to work together and realizing what the fundamentals are. U.S. Condemns Terrorist Murder Mr. Koppel: Now, in your speech today of American Officers in Iran you talked about U.S. desire for cooperation, but you also ivarn against confrontation. Did Department Statement ' you find any mood of confrontation ? The Department of State was deeply dis- Secretary Kissinger: Not among our tressed to learn of the murder of two U.S. European friends. That warning against con- Air Force officers in Tehran today: Col. Paul frontation was directed against some coun- R. Schaffer, Jr., and Lt. Col. Jack H. Turner. tries in larger forums such as the United We deplore and condemn this terrorist act Nations. of calculated brutality against American per- Mr. Koppel: Do you sense the same spirit sonnel assigned to duties in a country with of unity within NATO that existed when the which we enjoy close and friendly relations. Soviet Union ivas perceived as more of a We extend our deepest sympathy to the threat? families of these two officers. We are also confident that these murders, Secretary Kissinger: Well, it is a different evidently carried out by a band of profes- situation, more complicated, as is shown by sional assassins, do not represent the senti- the fact that this week we are putting so ments of the Iranian people toward Amer- much emphasis on energy and economic co- icans serving there. The strong ties between operation. But I am very encouraged by the our two countries, reinforced by the Shah's atmosphere in these meetings and by the conversations during his recent state visit, very serious effort everyone is making to find remain. a new basis for a new period of creativity. I understand that the Prime Minister and Mr. Koppel: What ivill be the principal Chief of the Supreme Commander's staff in issues that the President takes up beginning Tehran have expressed their condolences for tomorrow before NATO? these killings. Secretary Kissinger: He will take up some \Ye have also been assured that the Ira- of the conventional issues, such as security. nian authorities are launching an investiga- He will then take up some of the issues that tion to apprehend the murderers.

' Read to news correspondents on May 21 by ' Made in response to questions by Ted Koppel of Robert L. Funseth, Director, Office of Press Rela- ABC-TV (text from press release 304 A). tions.

858 Department of State Bulletin ;

Panama and the United States: Toward a New Relationship

Address by Ambassador at Large Ellsworth Bunker Chief U.S. Negotiator for the Panama Canal Treaty

I am happy to be with you this afternoon positive aspirations of peoples rather than and to have this opportunity to speak on the accumulation of arms by nations." - the efforts now underway to create a new In the past, when serving as a U.S. nego- relationship between Panama and the United tiator, I have made it a habit to keep my States. mouth shut publicly while negotiations were I know that the arrangements for the in progress. The fact that I have decided to future operation of the Panama Canal are of discuss today some of the key Lssues in the great interest to a major maritime city such current canal negotiations reflects another as Seattle. basic element of this Administration's con- But there are broader reasons why nego- duct of foreign policy—the awareness that no tiations over the future of the canal should foreign policy decision, and particularly no concern Americans. For the successful con- significant change in foreign policy, can take clusion of a new agreement on the canal: place without the advice and consent of Con- —Would demonstrate the possibility, in gress and the informed support of the Ameri- the conduct of our foreign relations, of re- can people, on the basis of candid and reason- solving problems when they are susceptible able public discussion. to accommodation and compromise, rather The story begins 72 years ago. In 1903 than waiting until they raise the danger of the newly independent Republic of Panama confrontation and possible use of military granted to the United States—in the Hay- force Bunau-Varilla Treaty—a strip of its terri- —Would provide concrete evidence of our tory 10 miles wide and 50 miles long for country's willingness to move toward a more the construction, maintenance, operation, mature partnership with Latin America, and protection of a canal between the At- where we have often in the past been accused lantic and the Pacific. Panama also granted of paternalism or neglect; and to the United States, in perpetuity, all of the —Would serve as an example of practical rights, power, and authority to act within cooperation between a large and a small that strip of territory as "if it were the country, aX developed and a less developed sovereign." treaty favored the United States country. Such cooperation is indispensable That the acknowledged promptly. John Hay, if we are to achieve what the Secretary of was the Senate when State recently described as the aim of U.S. then Secretary of State, told the treaty for ratification, foreign policy: "to help shape a new struc- it was considering

". . very satisfactory, . a treaty ture of international relations which pro- we shall have United States motes cooperation rather than force; nego- vastly advantageous to the

confess . . . not so advantageous tiation rather than confrontation; and the and, we must

- For Secretary Kissinger's address at Houston, 1, see Bulletin of Mar. 24, 1975, p. ' Made before the Rainier Club at Seattle, Wash., Tex., on Mar. on May 22 (text from press release 284). 361.

859 June 23, 1975 to Panama." Hay added, in writing to Sena- in our favor. Consequently, the level of its tor John C. Spooner, "You and I know very consent to our presence there has, over the well how many points are in the Treaty to years, persistently declined. And by Panama,

which many patriotic Panamanians would I mean the Panamanian people of all strata, object." The Senate ratified the treaty not simply their governments. promptly. The exploits of Goethals, Gorgas, and Causes of Decline in Consent Walter Reed led to a magnificent engineering Among the aspects of the 1903 treaty achievement which has served us well and of which have caused this decline which we are justly proud. in consent, Panama cites the following: For 60 years world shipping has been served efllciently and at low tolls. Today —The United States occupies a strip the canal, despite its age, is still of value across the heartland of its territory, cutting to the United States. Economically, we con- the nation in two and curbing the natural tinue to benefit from the shortened shipping growth of its urban areas. lines and lower transportation costs it per- —The United States rules as sovereign mits. Recent studies have estimated, for over this strip of Panama's territory, the example, that some 9 percent of the total Canal Zone. value of our exports and imports transited — It maintains a police force, courts, and the canal in 1972. jails to enforce the laws of the United States, However, we must be careful in assessing not only upon Americans but upon Pana- the canal's long-term value. It appears now manians as well. that trading patterns are evolving and that — It operates, on Panama's territory, alternatives to the canal have begun to a full-fledged government—a government emerge. As canal users take advantage of which has no reference to the Government these alternatives, it appears likely that the of Panama, its host. canal's value will generally decline relative —It operates virtually all commercial en- to our economy. terprises within the Canal Zone and denies Militarily, the canal has also been impor- to Panama the jurisdictional rights which tant to the United States. Although our larg- would permit private Panamanian enterprise est warships cannot use the canal now, it to compete. clearly enables us to shorten our supply lines —It controls virtually all the deep-water to some areas. Its large contributions during port facilities which serve Panama. the Second World War, Korean war, and — It holds idle large areas of land and Viet-Nam war have been amply documented. water within the Canal Zone. But, again, we should bear in mind the —The United States pays Panama $2.3 canal's growing vulnerability to hostile at- million annually for the immensely valuable tack, which points to the fact that we should rights it enjoys on Panamanian territory. not rely too heavily on it. —Finally, and perhaps most importantly, The point that I wish to make is that the the United States can do all these things, the canal's value, while of continuing impor- treaty says, forever. tance, is probably not as great relatively To these conditions Panama objects, say- speaking as in earlier years. ing that they deprive their country of dig- Moreover, our world today is a far diff'er- nity, of the ability to develop naturally, and ent one than that of 1903. indeed of full independence. No nation, including ours, would accept The United States attempted to respond today a treaty which permits exercise of to some of the Panamanian objections in rights as if sovereign on a foreign land in the past. Treaty revisions were made in perpetuity. 1936 and 1955. But the most objectionable Panama has grown increasingly conscious feature from Panama's viewpoint—U.S. ex- of the fact that the treaty is heavily weighted ercise of rights as if sovereign in the Canal

860 Department of State Bulletin — Zone in perpetuity has remained unchanged. — tion on the agenda of the new dialogue pro- Panamanian frustrations over this state posed by Secretary Kissinger. In March of affairs, and over of the apparent disinclina- this year the Presidents of Colombia, Costa tion of the United States to it, alter have Rica, and Venezuela publicly expre.ssed their intensified over the years. These frustrations support for Panama's cau.se. More recently, culminated in demonstrations and riots in the General Assembly of the Organization of January 1964 when 21 Panamanians and American States, meeting in Washington in three Americans were killed. Diplomatic re- the last two weeks, approved unanimously lations were broken. a resolution reaffirming their interest in the Following a major reassessment of our negotiation. policy toward Panama, President Johnson We no longer can be—nor would we want after consultations with President Truman to be—the only country in the world exer- and President Eisenhower committed us cising extraterritoriality on the soil of an- publicly and with bipartisan support—to other country. negotiate a wholly new treaty to replace the The evidence, it seems to rne, strong- old one. President Nixon and President Ford ly favors some form of partnership with subsequently renewed that commitment. Our Panama. purpose was, and continues to be this: to Partnership with Panama would help the lay the foundations for a new, a more mod- United States preserve what it needs most ern, relationship between the two countries. respecting the canal. Partnership would provide an environment conducive to effective operation and defense of the canal by the Partnership and U.S. Interests United States. It would provide Panama with

Without such a changed relationship I a meaningful stake in the operation and de- believe it safe to say that Panama's already fense of the canal. It would help stimulate the low level of consent to our presence will cooperation and friendship both of the Pan- government become lower still. It will approach zero. amanian people and of whatever given time. While it is true, of course, that we could exists in Panama at any attempt to maintain our present position In short, partnership would mean that the with regard to the Panama Canal, we would United States would not have to divert any have to do so in an increasingly hostile of its energies in Panama from the functions atmosphere. In these circumstances we would required for the efficient operation of the likely find ourselves engaged in hostilities canal. with an otherwise friendly country—a con- Putting it simply, I believe our interest flict that, in my view, the American people in keeping the canal open and operating for would not long accept. our own strategic and economic purposes is At the same time, we should bear in mind best served by a partnership agreement for of time. that the canal is vulnerable to sabotage and a reasonable additional period The is that geography, terrorist acts. We would find it difficult, if plain fact of the matter not impossible, to keep the canal running history, and the economic and political im- the United against all-out Panamanian opposition. peratives of our time compel venture in the The problem, in my opinion, simply will States and Panama to a joint not go away. Panama Canal. Attitudes, not only in Panama but in the We must learn to comport ourselves as hemisphere at large, have changed. The partners and friends, preserving what is Latin American nations have made our han- essential to each, protecting and making dling of the Panama negotiation a test of more efficient an important international line creating our intentions in the hemisphere. of communication, and, I suggest, When the Latin American Foreign Min- an example for the world of a small nation peacefully and isters met in Bogota, Colombia, in Novem- and a large one working ber 1973 they voted to put the Panama ques- profitably together.

861 June 23, 1975 — Such a new relationship involves giving —Panama will grant the United States the up something of what we now possess. We rights, facilities, and lands necessary to con-

want to keep the power but discard what tinue operating and defending the canal ; and is nonessential to our purpose in Panama. —The United States will return to Pan- Three examples should serve to explain my ama jurisdiction over its territory and ar- meaning: range for the participation by Panama in the —First, we will retain control over canal canal's operation and defense. operations for the duration of the treaty, We have also agreed in the principles but Panama will participate progressively that the treaty will provide for any expan- in these operations in preparation for its sion of canal capacity in Panama that may future role. eventually be needed, that Panama will get —Second, we will keep the lands and a more equitable share of the benefits result- facilities we need to control and defend the ing from the use of its geographical location, canal but return what we can do without. and—last but surely not least—that the new —Third, we will have defense rights but treaty shall not be in perpetuity but rsther perform our defense tasks with Panamanian for a fixed period. participation. Stage 2 involved the identification of the Simply stated, we will work together with major issues under each of the eight prin- Panama, but for the treaty's life we will ciples. This in turn provided the basis for operate the canal. We will secure the lands substantive discussions. we need by releasing what we do not need. Stage 3 began last June and continues. By having Panamian participation in opera- For almost one year now we have been dis- tion and defense we will have a more secure cussing, with the helpful cooperation and canal. In sum, we see a new treaty as the support of the Department of Defense, the most practical means for protecting our in- substantive issues associated with the state- terest. ment of principles to which we agreed in Whereas continuance of the status quo February 1974. will lead surely to prolonged problems—possible loss of what we are trying to preserve Economic Benefits, Land Use, and Duration partnership promises a greater assurance of We have made significant advances in success in achieving our essential interest: important subjects, including agreements re- a canal that is open, efficient, and neutral. lating to jurisdiction, canal operation, and canal defense. The Negotiating Process Besides these three issues several other Turning to the negotiations, they have major elements of a treaty package still re- proceeded step by step during the past 21 quire resolution. They concern: months through three stages. —Increased economic benefits to Panama; Stage 1 ended 15 months ago when Secre- —Some capability to expand the canal tary of State Kissinger journeyed to Panama should we wish to do so; to initial with the Panamanian Foreign Min- —The size and location of the land/water ister a set of eight principles to serve as areas we will need for control of canal op- guidelines in working out the details of a eration and defense; and new treaty.' Perhaps General Torrijos, the —Finally, and perhaps most importantly, Chief of Government in Panama, best char- the extent of duration of the treaty period. acterized these principles said when he they I shall comment now on only three of constitute "a philosophy of understanding." these questions—economic benefits, land use, Their essence is that: and duration—and then only in a general way. ° For text of the joint statement of principles benefits, Panama for many initialed on Feb. 7, see Bulletin of Feb. 25, 1974, On economic p. 184. years has complained that it receives a direct

862 Department of State Bulletin —

annuity of only million. $2.3 It has com- us. And yet we believe that the canal will plained that the low tolls charged to canal have an importance for an extended period users mean in effect that Panama has been of time. subsidizing world shipping. The agreements we reach on these issues Moreover, Panama believes that it can ob- will determine the final outcome of the nego- tain additional benefits from greater Pana- tiation. For better or worse, they could manian exploitation of its geographic posi- shape our relationship with Panama—and tion and the presence of the canal by de- indeed with all Latin America—over the veloping a wide range of commercial and next decades. Although we have no fixed service activities in the canal area and by timetable, we are proceeding, as I have said, deriving tax revenues from these activities with all deliberate speed. something Panama could do once it exercised jurisdiction over the area. For example, Misconceptions To Be Overcome Panama says it could develop certain unused There is opposition in both countries. land areas ; improve the Atlantic and Pacific In Panama some stand ready to challenge ports by installing larger, more efficient any "surrender" by their government of cranes for handling cargo and developing Panamanian aspirations to immediate con- greater port facilities ; and expand the Colon trol of the canal. Free Zone. Already Panama has plans which Here at home, I recognize that there are call for construction of an oil pipeline which some who hold the view that we should not would reduce the cost of transporting petro- relinquish any rights acquired under the leum across the isthmus. 1903 treaty. I understand this point of view. The United States agreed in the eight But for the reasons I have mentioned I principles that Panama would receive great- believe it is time for a new relationship. I er economic benefits from the operation of hope that it will be understood: the canal. —That a new relationship means good As for the issue of land use—that is, the policy and good defense policy; land and water areas that the United States foreign That a new relationship based on part- will need to continue to operate and defend — nership is consistent with good business the canal—it is not easily susceptible to management; and rapid resolution. That a new relationship signals a new Panama wishes to recover sizable land — era of cooperation between the United States and water areas, especially those adjacent and the rest of the hemisphere. to its urban centers, that are now under U.S. jurisdiction and would be the most We need to overcome several misconcep- logical areas for urban expansion. For our tions. I will mention four: part we want use, through the life of the First, we need to overcome the belief that treaty, of those lands and waters that are sovereignty is essential to our needs. necessary for the operation and defense of In reality we have never claimed sov- the canal. The problem will be to insure ereignty over the Canal Zone. Under the that we get sufl!icient areas to efficiently per- 1903 treaty we have extensive rights. The form these functions while at the same time new treaty would grant us continued rights reducing the physical presence which is so to operate and defend the canal, but we objectionable to Panama. would relinquish some rights which we don't essen- Closely linked to the question of land use need to accomplish these missions. Our abstract sovereignty is the issue of treaty duration. Panama has tial requirement is not accepted by Panama publicly said that "there is no colonial situa- but the specific rights— need. tion which lasts for 100 years or a Pana- —that give the control we overcome the idea that manian who could endure it." For the United Second, we need to essential to defense and opera- States it is diflScult to predict with any perpetuity is accuracy the duration of the canal's utility to tion of the canal.

863 June 23, 1975 On the contrary, U.S. insistence on per- lem at home is not fundamental antipathy to petual control is likely to create the kind of a new relationship with Panama. It is igno- hostile environment which will jeopardize rance of why the new relationship is needed our ability to operate and defend the canal to protect our interests. We need a straight- for an extended period of time. What is forward and productive dialogue. Consider- required is a relationship based on mutual able public education is needed if a new respect and dignity. treaty is not to be regarded as bad politics Third, we must overcome the belief that domestically. the Canal Zone is part of the United States Debate on an issue of such national im- or a U.S. territory. port is not only inevitable but desirable. In the 1903 treaty Panama granted us After education, dialogue, and debate I be- "rights, power and authority within the zone lieve that we will emerge with a reasonable

. . . which the United States would possess and mutually satisfactory treaty which will ... if it were the sovereign of the terri- be examined and which will stand on its ." tory . . . We were not granted "sovereign- merits. ty" as such. The United States for many years has considered the Canal Zone as Pana- manian territory, albeit under U.S. jurisdic- U.N. Disaster Relief Organization tion. Fourth, and last, we must overcome the To Receive U.S. Grant notion that a new treaty will somehow lead inevitably to the canal's closure and loss. This concern appears based upon an erro- Ambassador John Scali, U.S. Representa- neous view of the Panamanians as well as tive to the United Nations, signed a grant a lack of knowledge about our negotiating agreement on May 6 for a $750,000 U.S. objectives. There are still people who be- contribution to the U.N. Disaster Relief lieve that Panamanians lack the technical Organization to strengthen that body's ca- aptitude and the inclination to manage the pacity to provide an efficient and effective operation of the canal. These people ignore worldwide service of mobilizing and coordi- the fact that Panamanians already comprise nating disaster relief. over three-quarters of the employees of the Secretary Kissinger, in his address to the canal enterprise. While it is true that many 29th General Assembly, first called for a of these employees have not held supervisory substantial strengthening of the world's ca- positions, no one who has been to Panama pacity to deal with natural disaster, especial- and seen its thriving economy can persua- ly the improvement of the U.N. Disaster sively argue that Panamanians, given the Relief Organization. The United States sub- proper training, would not be able to keep sequently introduced a resolution to this the canal operating effectively and efficiently. effect, which was approved by the 29th Gen- Whereas Panama's participation in the eral Assembly. canal's operation and defense would increase This grant—pursuant to the provisions of its stake in the canal and provide it with a Resolution 3243 (XXIX) —will cover a large greater incentive to help us keep the canal portion of the first year's cost of improving open and operating efficiently, adherence to UNDRO's coordination, prevention, and pre- the status quo would more likely lead to the paredness capabilities in accordance with a canal's closure and loss. program drawn up by experts and approved

I firmly believe that our most critical prob- by the U.N. Director of the Budget.

864 Department of State Bulletin THE CONGRESS

The United States and the Future of the United Nations

Statement by John Scali U.S. Representative to the United Nations i

The Chinese word for "crisis" combines movable in a rapidly changing world, we may the characters for danger and opportunity. wind up standing alone. If, on the other

This is a good description of the current hand, we choose to lead the way, we can still state of the United Nations, an organization lead the United Nations into an era of his- in crisis, poised between imminent oppor- toric achievement. tunity and eventual disaster. No one can predict with any certainty Over the past two years the United Na- which of these paths the United Nations will tions has in assorted forums approved a take. I do believe, however, that the decisive series of thoroughly one-sided economic turning point will be reached sooner rather declarations. It has taken discriminatoiy ac- than later. I also believe that the United tion against Israel in UNESCO [United States can have a critical, perhaps a decisive, Nations Educational, Scientific, and Cultural influence over this organization's future.

Organization] , invited Yasir Arafat to speak It is not hard to pinpoint the present in New York, and illegally suspended South sources of tension at the United Nations. Africa. There are three—the Arab-Israeli dispute, Yet during this same period the United the battle for racial justice in southern Nations played an indispensable role in Africa, and the growing gap in living stand- limiting and eventually halting dangerous ards between developed and developing na- wars in the Middle East and on Cyprus. It tions. These three issues dominate all U.N. convened successful world conferences on deliberations for a good reason: these are two of the most critical issues of our time, the problems that most of the world's people those of food and population. In just the past feel most keenly. For most member nations few weeks, it has moved swiftly to seek to a United Nations which cannot promote bring relief to the war victims in Indochina. progress on these issues is not worth having. Unpalatable and arbitrary as some recent On December 6, I spoke to the General U.N. decisions are, we must face the possi- Assembly about the unfair, unrealistic, one- bility that there may be worse in store. Un- sided, and even illegal actions which the less we move with care and understanding, Third World majority was forcing on the our confrontation with the Third World will United Nations in pursuing these goals. I worsen. If we, as a government, stand im- warned of the damage these decisions were doing to the United Nations and to the real ' Made on May 22 before the Senate Committee interests of all its members. on Foreign Relations hearings on the role of the These remarks set off one of the most United States in the United Nations (text from USUN press release 44 dated May 21). The complete comprehensive and, in my opinion, most transcript of the hearings will be published by the constructive debates in the Assembly's recent committee and will be available from the Superin- history. Representative after representative tendent of Documents, U.S. Government Printing policies, fears, Office, Washington, D.C. 20402. frankly laid out his country's

June 23, 1975 865 and hopes about the fundamental problems nations frankly recognize that there may be now faced by us all. This debate was helpful, deep differences on fundamental issues but but it did not resolve our differences. It did, continue to work at narrowing these differ- however, create a more hopeful atmosphere ences and at the same time move ahead in and gave us a better idea of the deep-seated areas where they are able to agree. And emotions that exist on both sides. there are such areas where patient diplomacy We and the nations of the Third World can make the difference. are divided on issues of major importance. This is no dream. It is a realistic alterna- We differ on how to achieve peace in the tive. It requires only that we and other na- Middle East, how to bring social justice to tions begin to use the United Nations to its

southern Africa, and how to insure a more capacity to help it fulfill its potential. In the equitable sharing of the world's wealth. We Middle East and in Cyprus, the United Na-

are not divided on goals, however, and we tions is showing that it can keep the peace.

are not fundamentally divided on the role In crisis after crisis, the United Nations is which the United Nations can play. demonstrating that when called upon in time There is no single sure-fire formula which it can respond effectively to the task at hand. can reform the United Nations and reverse At conference after conference, the United the trend toward confrontation there. The Nations is proving that 100 and more coun- tone in which we conduct our dialogue can tries can be brought to meaningful agree- soothe or it can inflame our current differ- ment even on the most complex and contro- ences. Our language, our posture, can en- versial issues when they have the will to hance or set back the prospects of compro- do so. mise. But only sincere negotiation on the The United Nations need not be the sole problems of critical importance to the Third institution for negotiating and managing the World can halt the continued deterioration complex problems of interdependence. But

in our relations with these nations. it should have a central role in that process If, because of choice or neglect, the world as the single universal organization that ex- community fails to make the United Nations presses in broadest terms the collective hopes work, the alternative is not cooperation else- and needs of all who inhabit this planet. where in some other more promising forum The fate of the United Nations rests with but inevitably a fundamental breakdown of all of its members, but it rests most heavily the main path to international cooperation. with those in a position to help resolve the

The dream of an open and cooperative world issues confronting it. The United States can- order to which mankind committed itself 30 not singlehandedly bring peace to the Middle years ago will wither and die. In its place, East, majority rule to southern Africa, or there certainly will arise a world divided into economic justice to the world. We can, how- exclusive, selfish, and rival camps, where ever, continue to support these goals, and each nation's gain is another's loss. we can seek to lead—not as the sole head- I see a different future, however. I see a quarters of justice and wisdom, but as one United Nations capable at last of fulfilling who recognizes that new and exciting doors the mandate of its founders. I see a United can be opened by many countries in an in- Nations serving as the international com- creasingly interdependent world. munity's principal forum for peacemaking The record of our country as a champion and peacekeeping. I see the United Nations of freedom, social justice, and economic op- being used by its members as the court of portunity is one in which every American first resort to settle differences, rather than can take pride. No nation, however, can ex- as the court of last resort for their conflicts. pect to be judged on its past. To the peoples I see a world in which 150 nations live at of the Third World we can show that we are harmony and in peace—their security pre- still the same nation which issued the served collectively and their prosperity pur- Declaration of Independence, promulgated sued cooperatively. I see a world in which the Emancipation Proclamation, advanced

866 Department of State Bulletin of the principle self-determination of peo- into the forefront of those seeking to close ples, created the concept of international the gap between rich and poor. development, and pressured its closest allies If the United States follows this course their colonial to free vast empires. steadfastly, I believe we can realistically re- In southern Africa we can do more than quire that others meet their responsibilities decry racism—we can disassociate ourselves to move with us on the course of coop- from it entirely. In the Middle East we can eration.

commit ourselves unequivocally to the pur- If we listen as well as lead, I am con- suit of a just settlement which recognizes vinced that the current trend toward con- the rights and national aspirations of all the frontation will be reversed and that this will people of that area. In our relations with the open a new era of achievement at the United developing nations we can move once more Nations.

Preparations for the Seventh Special Session of the United Nations General Assembly

Following are statements made on May 21 Considering the prominence which the As- before the Subcommittee on International sembly's sixth special session has acquired, Organizations of the House Com,mittee on I believe it would be useful to our discussion hiternational Relations by Roy D. Morey, first of all to describe the background to the Deputy Assistant Secretary for hiterna- upcoming seventh special session, the impact tional Organization Affairs; Paul H. Boeker, of the sixth special session and other recent Deputy Assistant Secretary for Economic U.N. meetings on preparations for it, and the and Business Affairs; and Clarence Clyde differences—which we hope will be signifi- Ferguson, Jr., U.S. Representative on the cant—between the two. U.N. Economic and Social Council.^ The sixth special session, which met from April 9 to May 2 last year, was totally un- expected. It was convened at the request of DEPUTY ASSISTANT SECRETARY MOREY President Boumediene of Algeria, largely as a reaction to the Washington Energy Con- This afternoon I would like to describe ference and a French proposal to hold a seventh the nature of the General Assembly's world energy conference under U.N. aus- special session and the U.S. approach to it. pices. The move served to divert attention Deputy Assistant Secretary Boeker will from the oil price issue and to rally the issues speak in greater detail on the economic developing countries around the theme of the bulk of the which are expected to form their allegedly disadvantageous trade posi- substantive for the session. Am- agenda tion as commodity exporters. After only a bassador Ferguson will describe the situa- few weeks of hurried preparation, the As- preparatory tion in New York during this sembly met and, under Algerian leadership, phase. pushed through a call for the establishment of a "new international economic order." ' The complete transcript of the hearings will be The declaration and the lengthy program of and will be available published by the committee action which the developing countries pushed from the Superintendent of Documents, U.S. Gov- adoption did not gain the concurrence of ernment Printing Office, Washington, D.C. 20402. to

867 June 23, 1975 the major developed countries on the prin- ter of Economic Rights and Duties of States cipal substantive elements and, in general, and the adoption of an equally unacceptable represented only LDC [less developed coun- UNIDO [U.N. Industrial Development Or- try] views on trade, development assistance, ganization] Declaration and Plan of Action monetary reform, and other economic issues. of Lima in March of this year, reflect a new The seventh special session has quite dif- militancy on the part of the developing coun- ferent antecedents. The economic problems tries. The LDC's have demonstrated over of the developing world have been an issue the past year and a half a tight tactical unity, of growing importance in the United Nations a determination not to compromise on issues since the early 1960's. By the fall of 1973, of principle, and a conviction that they have the LDC's were pressing the case for their the upper hand as a result of the success of economic interests with great vigor in the OPEC [Organization of Petroleum Export- General Assembly. Resolutions were adopted, ing Countries]. with the support of both developed and de- We have, fortunately, a considerably long- veloping countries, on the first review of er preparatory period for the seventh implementation of the International Devel- special session than for the sixth. The time opment Strategy, on international monetary is being used well, and the arrangements for reform, on the soon-to-be-opened trade the work of the session—both as to formal negotiations and other economic matters. structure and substantive content—will be The compromise texts did not alleviate the more careful and more thoughtful. The intense dissatisfaction of the developing United Nations began working on its prep- countries with what they felt to be the in- arations in February. The United States adequate concern for their needs on the part began to consider the issues and problems of the developed countries. as soon as the 1974 General Assembly ses- This dissatisfaction resulted in the intro- sion drew to a close in December. duction of a resolution calling for what Allow me to turn now to our preparations would have been the first special session of for the seventh special session and the op- the General Assembly devoted to economic portunities and challenges presented to the issues. As originally conceived, the General United States. Assembly at its special session in 1975 was Following our preliminary evaluation of to consider the broad range of international the prospects for the session, a preparatory economic issues, those of concern to the de- group was established in the State Depart- veloping countries in particular, as well as ment in February 1975. This group was the related reform of the structure of the launched under the chairmanship of As- United Nations itself. The United States, sistant Secretary [William B.] Buffum of while concerned over the growing propensity the Bureau of International Organization of the LDC's to use the General Assembly Affairs. Lender Secretary Sisco [Joseph J. as a forum to seek policy concessions from Sisco, Under Secretary for Political Affairs] the industrialized world, did not object to began to chair the group last month. In addi- their call for a special meeting to consider tion, our preparations have engaged the their problems. attention of Under Secretary Robinson Thus, while the sixth special session rep- [Charles W. Robinson, Under Secretary for resented the immediate reaction to a critical Economic Affairs] and Secretary Kissinger. world economic situation, the seventh special The preparatory group has served to session is really the expression of longstand- further identify the issues with which we ing concerns of the developing world which will deal, to clarify the options available for have had growing importance to the United our overall approach to the session, and to Nations as a whole. At the same time, the determine the various bilateral and multi- adoption last fall of resolutions on the new lateral channels we have available for us to international economic order and the Char- achieve our goals.

868 Department of State Bulletin With regard to this last point, we have The effectiveness of U.N. -system economic been holding extensive bilateral consulta- structures has drawn increasing criticism tions with developed country representatives from both developed and developing coun- for the past three months. Our contacts with tries. As I indicated previously, the dis- the developing countries have centered in satisfaction of the developing countries with New York; Ambassador Ferguson will de- the responsiveness of the U.N. system to scribe the situation there in greater detail. their problems was a major reason for call- Last week we instructed our Embassies in ing the seventh special session. about 25 major developing countries to I do not need to remind this committee of initiate discussions on the seventh special the criticisms that the United States and session with their host governments. other developed countries have expressed We intend to establish close bilateral con- regarding inefficiencies in the U.N. system. tacts with both developed and developing Although the United States and the devel- countries during the entire preparatory oped countries on the one hand and the period. developing countries on the other still find With regard to the issues, we have in- important benefits from their participation structed our Mission in New York and our in the U.N. system, they are all convinced Embassies in the field to inform the devel- that major improvements in the structure oping countries that we believe the special and operations of the U.N. system can and session can most usefully consider five must be made. general topics: Our specific proposals to deal with the issue of U.N.-system structural change re- 1. International commodity trade; main to be developed in detail, awaiting 2. International food needs; further consultations with other countries 3. Transfer of financial resources; and more review within the government. 4. Problems of the poorer developing However, I can indicate the basic objectives countries; and that will be guiding our efforts: 5. Structural changes in the U.N. system. 1. We believe that there should be a The problems of commodity trade are a rationalization and streamlining of the pres- principal concern of the developing coun- ently fragmented and too-often duplicative tries. As Secretary Kissinger indicated in development assistance mechanisms in the his speech in we Kansas City [on May 13], U.N. system. are prepared to discuss this problem with 2. We are anxious to have U.N. develop- them in a responsible manner. We believe ment assistance programs more heavily that further international action is needed oriented toward helping those countries that in the area of food, building on the accom- are most in need—those that are least able plishments of the World Food Conference. to finance their own development or to at- The potential sources of financial resources tract and obtain other resources, both public to finance the development efforts of the and private, for their economic development. LDC's must be examined as a critical ele- the specialized ment of the world economic order. And we 3. We would like to see freed of their feel the international community must turn agencies of the U.N. system for executing develop- its attention to meeting the needs of the heavy responsibilities and rededicated poorest developing countries in particular, ment assistance projects mandates which called for they are least able to help themselves. toward their original cooperation Deputy Assistant Secretary Boeker will for promoting international as information ex- discuss these issues in greater detail. I through activities such of national policies, would like to describe at this point our views change, harmonization of research, and the setting on the fifth problem area, U.N. structural the promotion change. of standards.

869 June 23, 1975 4. We think that opportunities exist to understanding and to strengthen a common streamline U.N. -system secretariat opera- commitment to international cooperation, tions through the consolidation of matters not confrontation, in meeting the urgent such as personnel recruitment and manage- economic needs of both the developed and ment, payrolling, accounting, procurement,- developing nations of the world. and buildings management activities.

5. Finally, we need to establish within the DEPUTY ASSISTANT SECRETARY BOEKER U.N. system an independent program- evaluation mechanism, a longstanding U.S. In the course of our participation at the proposal. This sort of mechanism reporting seventh special session of the U.N. General directly to member governments on the Assembly in September, the United States effectiveness of U.N.-system operations intends to exercise its traditional role of should help to keep the U.N. system self- leadership in addressing the array of eco- correcting and should suggest other struc- nomic problems besetting developing nations tural changes as they become necessary. of the world. At the present time—with the What do we expect from the seventh cumulative effects of the energj' crisis, wide- special session? On the one hand, we do spread recession, and changing relationships not believe that the General Assembly can be between rich and poor nations—the environ- the scene of detailed negotiations on specific ment for international cooperation is under economic issues. Therefore, we will continue severe strain. This is particularly noted in to resist the efforts of the developing coun- multilateral forums such as the United Na- tries to "legislate" issues of economic im- tions, where the developing nations have portance on the basis of their numerical banded together to achieve a dominant posi- majority in a one-country-one-vote situation. tion in the deliberations on economic issues. In essence, the developing nations are de- However, the General Assembly has two manding the right to exercise greater in- characteristics which distinguish it from fluence in world affairs. In the economic field other international economic institutions. they are endeavoring to secure: First, it is the only body that can look at all economic issues in their broadest context. —Special access to markets for their ex- Second, it is particularly a forum for the port goods. consideration of the problems of the have- —Integrated regulation of commodity not and weaker members of the world com- markets. munity. Thus we believe that the special —"Indexation" of prices so that prices of session can provide an opportunity for the raw materials are linked with those of entire membership to identify problems, to manufactured goods. discuss their priorities and interrelation- —Increased transfer of real financial re- ships to reveal where consensus exists and sources to developing nations, preferably

to stimulate it where it does not, and to point through automatic mechanisms. the way for implementation of agreed con- —Monetary reform, specifically including clusions or to further negotiations in areas a greater voice by developing countries in of disagreement. the affairs of international financial institu- The session in particular presents the chal- tions. lenge of reestablishing a more productive —Greater access to and control of tech- discourse with the developing countries. We nology as well as more rapid industrializa- will make every effort to keep the debate tion. away from the level of ideology and empty Although the U.N. General Assembly can- exhortation; we will try to chart channels of not be the forum for detailed negotiation of common effort aimed at practicable and economic issues, the upcoming session does effective solutions. This will not be easy. provide an important opportunity for the But we are going to try to create mutual international community to discuss key prob-

870 Department of State Bulletin lems, attempt to narrow differences of ap- fact that the United States has provided proach, and to lay a basis for follow-on more than 4 million tons of food aid in all woi'k in appropriate international bodies. but one of the past 20 years, and he re- There are indications that many of the affirmed that we will do our utmost to main- developing nations are willing to use this tain this high standard. This year's bilateral special session for consideration of a limited food aid program is nearly $1..5 billion. list of economic problems, as opposed to Some of the best prospects for increased earlier instances when the primary objective food output are in developing nations. In- seemed to be to cite a wide array of demands creased production by these nations de- in an extreme posture. Recently, the so-called creases their reliance on food aid and can "Group of 77" nations—the U.N. caucus of lead to increased exports. The Administra- developing countries—circulated a modified tion is endeavoring to concentrate U.S. aid list of questions to be discussed: interna- capital in this sector in LDC's with the best tional trade, transfer of real resources for potential. financing the growth of developing nations, The World Bank [International Bank for monetary reform, science and technology, Reconstruction and Development (IBRD)], industrialization, and restructuring of the with U.S. support, also is taking steps to economic and social sectors of the U.N. double its lending to agricultural develop- system. ment. Increasingly, American assistance For our part, we are suggesting an agenda both in bilateral as well as multilateral which would include: international food forums will place emphasis on research, needs, problems of poorer developing coun- fertilizer supply, and improved transport, tries, transfer of financial resources includ- pest control, and storage of food grains. ing private investment and financial ar- For the past three years there has been a rangements to mitigate the plight of nations shortage of some grains in international most affected by the current economic crisis, trade despite the all-out efforts of U.S. plus international commodity trade. farmers. This year the outlook for such crops is promising. To take advantage of this situation the United States is proposing a Meeting World Food Needs comprehensive international system of grain In the area of food needs, the United reserves. Secretary Kissinger recently ad- States last November initiated a major in- vocated that a reserve system be created ternational effort to eliminate the cycles of based on the following principles: agreed famine which periodically plague the devel- rules to engender stockpiling of grain in oping nations. At the World Food Conference time of good harvests; fair allocation of the importers in Rome we reached agreement with other cost of such reserves by both grain by each nations to expand food production in ti'adi- as well as exporters; determination will be tional food-exporting countries, promote participant of how its reserve portion for the use greatly expanded production in developing maintained; agreed guidelines grain is available countries, and develop a system of food re- of the reserves so that the not unnecessarily deserves to be used for emergencies. We will when needed but does special provision to affirm those goals at the special session. press market prices; poorest developing nations; In the shortrun period, however, many meet the needs of liberalized trade in grains. nations will continue to rely on food aid and lastly, a more from the United States and other donor nations. perceive this as the responsibility We The Poorer Developing Countries of all well-to-do nations, including major the least devel- oil-exporting nations whose income has in- For more than a decade, been lobbying for increased dramatically in the past two years. oped nations have assistance. At the first In his May 13 speech in Kansas City, creased foreign Conference on Trade and Secretary Kissinger called attention to the UNCTAD [U.N.

871 June 23, 1975 Development] conference in 1964, the LDC's trust fund under the International Monetary secured adoption of the principle that they Fund (IMF). should receive "special attention." By 1968, The fund we propose would be legally at UNCTAD II in New Delhi, a resolution separated from, but administered by, the was passed calling for "special measures" IMF. It would obtain its funds in part by for the as-yet-unidentified least developed direct contributions from countries in a countries. position to contribute—particularly the By 1971, the United Nations formulated major oil-exporting countries—and in part a list of 25 "least" developed nations from the use of a portion of IMF holdings of (LLDC's). In 1974, the United Nations pub- gold, which are currently valued at about lished a list of nations most severely affected one-fourth the market price. The fund as by the current economic crisis (MSA's). conceived would provide balance-of-pay- Predictably, many countries have wished to ments loans to needy low-income countries be included in such lists in the expectation at highly concessional terms, with a maturity that tangible benefits would be forthcoming. of perhaps 10 years and a substantial grace period. The United States has suggested that We recognize the special developmental the organization with a lending ca- problems of poorer nations and support the start pacity of $1.5-$2 billion per year. view that special measures are needed. This We are pursuing vigorously our efforts to has been reflected in the modification of AID establish this loan facility in consultations [Agency for International Development] — with other OECD [Organization for Eco- allocations and procedures which are de- nomic Cooperation and Development] na- signed to serve the unique and differing tions. The subject also is being discussed needs of the poorer of the poor wherever in the IMF-IBRD Development Committee. they live. The developing nations are well represented Although we continue to be flexible and in these negotiations, holding nine of the 20 forthcoming with regard to emergency needs seats on the committee. After the next De- of LDC's, we still need to emphasize that velopment Committee meeting on June 12- external assistance to LDC's must be coupled 13, we should have a clearer idea of the with self-help policies in recipient nations prospects for this proposal. We may at that which are aimed at increasing production, time wish to discuss it further in the course not just redistributing it. of the U.N. special session. In the light of global attention currently

Financial Resources and Commodity Issues focused on commodity problems, commodity trade will be a major issue at the seventh Many developing countries, particularly special session. We are aware of the de- those characterized as the most severely af- pendence of countries on internationally fected by the current economic crisis are fac- traded commodities and recognize their in- ing urgent balance-of-payments problems terests in seeking steady supplies of inter- arising out of increased oil prices, higher nationally traded commodities. food-import requirements, and the recession A number of measures have been proposed in industrial countries. These countries re- in various forums to address commodity quire an infusion of balance-of-payments as- problems, including price-fixing arrange- sistance on highly concessional terms if they ments, centrally managed stocks, indexation, are to maintain even minimum acceptable endorsement of activities by producer as- rates of growth without incurring non- sociations, compensatory financing schemes, sustainable debt burdens. An international and integrated approaches using a combina- framework is needed within which this ad- tion of these mechanisms. ditional assistance can be provided. The U.S. The United States recognizes that exces- Government has proposed that the frame- sive shifts in commodity prices can entail work best suited for this need would be a unjustifiably heavy costs and uncertainties.

872 Department of State Bulletin —

During periods of slack demand, the main- menta in North-South issues. The United tenance of excess capacity is costly in terms States, for example, already has initiated a of investment and employment. When the major proposal to alleviate world hunger. demand cycle soars, rapid price hikes can be The United States continues to support the equally disruptive to orderly market opera- establishment of a major capital fund tions. To deal with these issues. Secretary through the IMF which would service the Kissinger has presented the main elements immediate balance-of-payments needs of of a U.S. approach: poorer nations. We are now engaged in bilateral discussions designed to assure both —The multilateral trade negotiations adequate supplies and fair prices for par- (MTN) novir underway in Geneva should ticular commodities. At this U.N. special ses- develop new rules and procedures on issues sion we would hope to lay the basis for fur- such as freer access of nations to supplies ther action on such specific initiatives. and markets, promoting of mining and processing industries vital to commodity ti'ade, and settlement of international disputes in AMBASSADOR FERGUSON this field. I am pleased to have this opportunity of The United States is prepared to discuss — appearing before your committee, which is arrangements for marketing of com- new considering the matter of the upcoming sev- modities on* a case-by-case basis. Presently, enth special session of the General Assembly. for example, we are discussing marketing I should like to focus my testimony on the for tin, coffee, and rubber; arrangements state of preparations for the seventh special discussions on other commodities may be session in New York. initiated later. Understanding the preparatory phase, the will propose that the World —Finally, we aims and objectives of the various groups, investigate to finance investment Bank ways and the likely outcome of processes now in in developing in raw material production train requires some understanding of the is especially in- countries ; the United States groups which have emerged and evolved in capital for com- terested in mobilizing new the United Nations, particularly on economic it with existing man- modities and combining issues. agement and technology skills. We have heard much of such broad-scaled Both producers and consumers have much descriptions as the Third World, the non- to gain in settling differences and cooperating aligned, the least developed, the developing, to assure adequate supplies and I'emunera- the developed, and the Group of 77. tive prices for commodities traded. The The so-called Third World is not a mono- the impression created United States is prepared to respond to le- lithic entity, despite voting tech- gitimate concerns of developing countries in by the admittedly monolithic the General As- this regard. niques applied recently in World groupings Overall, the U.S. objectives at the seventh sembly. The present Third evolved from two sep- special session are to engage in a cooperative, in the United Nations positive dialogue with the developing nations arate sources. the nonaligned movement and to be responsive to legitimate economic As you recall, a decade ago, principally objectives, consistent with our own economic was formed over leadership of Prime Minister Neh- and political interests. We enter into the pre- under the President Tito of Yugoslavia. paratory phase of these meetings with the ru of India and conceived principally as a political best of good will. It was of developing non-Western coun- We will not shy away from a general dis- alignment stake out an independent position cussion of the broad principles of develop- tries to Western countries and the So- ment cooperation. We also wish, however, to between the The emphasis to repeat have the discussions at this special session cialist countries. — on political alignment or, as the title contribute to a record of specific accomplish- was

873 June 23, 1975 implies, political nonalignment as between In the informal meetings of the prepara- the two super blocs of the world. tory committee to date (March 25, April 2,

On the other hand, the Group of 77—now May 2, and May 9, 1975) , although primarily numbering well over 90—originated as a focused on organizational matters, two sub- grouping of developing countries designed stantive sugge.stions have surfaced. to deal almost exclusively with economic First, on April 2, the United Kingdom in- problems. As a result of the sixth special formally circulated its procedural proposal session, and in particular certain attributes for a three-tier approach to the session: (1) of the leadership of Algeria in that session, a general statement of principle; (2) speci- there has been a very substantial, but yet still fications of areas of possible agreement and not complete, merger of the Group of 77 and constructive action; and (3) identification of the nonaligned on economic issues. areas where agreement does not appear to be In preparation for the seventh special ses- possible at this time and hence further work sion. General Assembly Resolution 3343 needs to be carried out. (XXIX) of December 17, 1974, called for (1) Second, on May 2, the Group of 77 circu- the preparatory committee for the special lated a provisional list of specific areas for session to hold an organizational session in consideration at the special session grouped

March and its major substantive session in into five general categories : (1) international June; (2) the Secretary General to submit trade; (2) transfer of real resources and to the second session of the preparatory com- monetary reform; (3) science and technol- mittee a report on the state of international ogy; (4) industrialization; and (5) structur- economic activities focusing on constraints al reform. of a general policy nature affecting the in- We welcome this "provisional list" as a sig- terests of developing countries in the overall nificant effort by the Group of 77 to move pattern of international economic relations; awaj' from an all-encompassing considera- and (3) the establishment of a group of high- tion of the broad spectrum of international level experts to submit to the second session economic relations and to focus on a limited of the preparatory committee a study con- number of problem areas. However, we be- taining proposals on structural changes in lieve that the list still covers too many areas the U.N. system to make it more capable of and in its language it prejudges answers to dealing with the problems of international problems rather than just stating the prob- economic cooperation. A final report from the lems themselves. preparatory committee will be considered by Parenthetically, we are impressed that the summer session of the Economic and So- though these informal consultations are es- cial Council this July in Geneva. sentially exploratory, the mood has been con- The first organizational session of the pre- ciliatory with an emphasis on finding areas paratory committee (March 3-7, 1975) and procedures for constructive action. agreed on plans for its second substantive The Experts Group on United Nations session and urged further dialogue through Structure, appointed in accordance with Gen- informal consultations under the guidance of eral Assembly Resolution 3343 by the Sec- the preparatory committee bureau. During retary General is a group of 25 expei-ts the session, developed country spokesmen serving in their personal capacities. The ex- stressed the need for cooperation on specific perts come from countries in all of the major issues rather than confrontation over gen- geographic regions. The U.S. expert and rap- eral declarations. Although Mexico and Al- porteur for the group is Richard Gardner, geria sounded the traditional themes con- professor of law and international relations cerning a new international economic order at Columbia University and former Deputy and the Charter of Economic Rights and Assistant Secretary for International Or- Duties of States, the Group of 77 was rela- ganization Affairs, Department of State. tively muted. The U.S. governmental preparations are

874 Department of State Bulletin ;

moving apace. Both the Department of State the Group of 77 at the sixth special session and the U.S. Mission to the United Nations or the 29th General Assembly. have, over the last half year, been engaged In addition, the Group of 77 countries have in continuing consultations with key repre- been pushing strongly their viewpoints in sentatives of both developed and developing meetings of U.N. subsidiary bodies over the countries. past half year, most notable being the U.N. In our consultations we have stressed, first, Industrial Development Organization meet- the importance we attach to the seventh ing held in Peru, March 12-26, 1975, and special session and the need to avoid con- the preparatory conference for the French-

frontation ; second, our willingness to be proposed energy conference in Paris, April responsive to the legitimate needs of develop- 7-15, 1975. However, our private bilateral ing countries in "meaningful and realistic" consultations and the informal sessions of the

ways ; third, the seriousness of efforts being preparatory committee have indicated that taken within the U.S. Government to review many of the developing countries are serious- both substantive and structural questions ly interested in having positive pragmatic re- and finally, our belief that the outcome of sults come from the seventh special session. the session will have an important bearing Finally, Mr. Chairman, I am aware that on American attitudes toward the United self-quotation, if not a major vice, is at least Nations. one that must be forgiven. I beg your per- The Mission and the Department have es- mission therefore to repeat a few words of tablished special working groups to review my own delivered in New Delhi on February U.S. policy on the issues most likely to be 28, 1975:

raised at the seventh special session. These "Even at this stage in our deliberations it reviews are not as yet complete. The effort, has been more than amply confirmed that the however, is to find effective ways to meet the international community in all of its aspects growing concerns of both the developed and is in the midst of a year of crisis. It is not an the developing world and, if possible, to field overstatement to assert that never before initiatives on substantive and structural is- has the entire world been faced with such sues. ominous choices. Failure to resolve the prob- Although not strictly defined in terms of lems occasioned by current economic disloca- preparing for the seventh special session, it tions could result in the death of more peo- is nonetheless clear that the Group of 77 ple than in World War II. Failure to resolve countries are and have been preparing for our crisis could witness shifts in the global the session in a series of meetings, the more monetary system far exceeding any such in important of these being: the conference of history. Failure to resolve the crisis could developing countries on raw materials in result in social and political collapse unprece- Dakar, February 3-8, 1975; the Group of 77 dented in history as we know it. Consequent- second ministerial meeting in Algeria, Feb- ly, the enormity of the responsibility on the ruary 15-18, 1975; the OPEC heads of state international community and on the United literally must bring forth our best, conference in Algeria, March 3-6, 1975 ; and Nations the third ministerial meeting of the coordi- most compassionate, and most profound ef- nating bureau of nonaligned countries in Ha- forts. vana, March 17-19, 1975. This series of meet- "My government is prepared to examine, ings will culminate in the meeting of Foreign discuss, and compromise those issues which Ministers of the nonaligned countries sched- for various reasons divide us now. uled to be held in Peru in late August, just "We look not to the past but to the fu- prior to the opening of the seventh special ture. We seek not to adjudge guilt but to for a better world session. There is little in the formal final re- fashion justice. Our hope ports of these meetings to suggest any major may well lie in what we do in the course of weakening in the strong positions taken by the brief span from now until September."

875 June 23, 1975 We have: Report on Development Coordination bilateral development aid the Congress —adapted our Transmitted to poor program to give more assistance to the countries. Message From President Ford^ majority in the developing —supported multilateral institutions as a promote means for worldwide cooperation to To the Congress of the United States: Congress the First economic and social development. I hereby transmit to the the world food problem by Report on Development Coordina- —responded to Annual countries 640B(d) of increasing food aid to the needy tion, in accordance with Section assistance to help them Assistance Act of 1961, as by increasing our the Foreign work- more of their own food and by amended. grow nations to get a fully multi- appropriate time for the first ing with other This is an accord- of the national response to food issues in report on the policies and actions recent World Food Conference, affecting the development of ance with the United States Act which the past —signed into law a new Trade the low-income countries. Over countries to increase developing coun- will help enable poor decade, the economies of the with us, both by preferential at an encouraging rate. their trade tries have grown general American as- treatment for their exports and by This was partially because of nations no lessening of barriers to world trade. sistance. Consequently, many assistance on the concessional longer need Much remains to be done. We must: terms we once extended. of countries Unfortunately, there remain a number —work with other high income malnutri- needs of the very poor nations suffering from to help meet the continuing opportuni- present world eco- tion and disease, poor educational poorest countries in the Our policies ties and very low incomes. nomic situation. that long-run must continue to reflect our belief —continue our efforts to meet the related to through a coordi- American well-being is intimately problems of food scarcities international en- increased food production a secure and prosperous nated program of economic nutrition, vironment and humanitarian and in the poor countries, improved motivated our food aid, and re- concerns that have for so long increased food stocks and in petro- boost food output assistance programs. The increase search and development to of leum prices and the food crop shortfalls everywhere. as world re- opportunities for the past several years—as well —continue to provide the poorest to expand their cession and inflation—have hit the developing countries States and other in- countries with particular severity. trade with the United worked with In 1974, the United States dustrialized nations. with various of the World Popu- other industrialized nations and —build on the results our assist- the maximum international agencies to adjust lation Conference, fostering the less- in dealing with ance and trade policies toward international cooperation new situa- developed countries to meet the world population problems. and con- for working with tion and to ensure a coordinated —find new techniques international countries that no structive response from the those rapidly advancing assistance, community. longer require our concessional American but are anxious to benefit from White House development "transmitted on May 22 (text from skills and resources in their prepared under the press release). The report, Coordmation Com- programs. supervision of the Development Issues, First An- Coordination Committee mittee, is entitled "Development The Development on U.S. Actions Affect- our nual Report of the President to assist in ensuring that Countries. was created ing the Development of Low-Income

Department of State Bulletin 876 Ijolicies and actions with respect to the de- Section 812 (the Jackson-Nunn Amendment) veloping countries are coordinated to reflect states that if our European NATO Allies our interest in their welfare and improved fail to offset this deficit, then U.S. troops in quality of life, and to advise me on how Europe must be reduced by the percentage our actions are affecting these poor countries of offset not provided. I am pleased to re- and our own economy. port that our Allies have fully offset the In recent years, there has been disillusion- U.S. fiscal year 1974 deficit and that the ment with our ability to help others in this troop reduction provision will not have to world. Our efforts have slackened. We have be implemented. looked too much at our failures and not The U.S. NATO-related balance of pay- enough at our successes. While our economic ments expenditures during fiscal year 1974 problems at home are serious, we remain one totaled $1,997 billion. We sought to cover of the most productive countries in the these expenditures in two ways. First, we world. We have much to contribute and negotiated with the Federal Republic of we have much to gain from economic co- Germany (FRG) an Offset Agreement which operation with developing countries and had a total value of $2,218 billion over the from their economic progress. Our own pros- 1974-75 time period. The fiscal year 1974 perity will be enhanced if we remain true portion of the agreement has come to $1,150 to our long tradition of assisting those in billion. Secondly, our other NATO Allies need. have placed substantial military procure- If we help them to help themselves, we can ment in the U.S. They have been able to work towards a stronger and more just in- identify $1,016 billion in such procurement, ternational economy for the future, lessen of which $917 million can at this time be human suffering, and increase our own se- applied against FY 1974 expenditures. The curity in a rapidly changing world. NATO Allies and the NATO Economic Gerald R. Ford. Directorate deserve our special recognition for their cooperation in establishing a liaison The White House, May 22, 1975. mechanism for identifying these purchases. Appendix A provides an accounting of our compliance with the provisions of the Amendment. Final Report on NATO Offset The Jackson-Nunn Amendment also called Transmitted to the Congress upon our Allies to assist the U.S. in meeting some of the added budgetary costs that President Ford ' Message From result from maintaining our forces in Europe rather than in the continental United States. To the Congress of the United States: The major form of this budgetary support In accordance with Section 812(d) of is contained in the two-year U.S.-FRG Offset the Department of Defense Appropriation Agreement. The agreement includes approxi- Authorization Act, 1974 (Public Law 93- mately $224 million to rehabilitate badly de- facilities 155), I am pleased to submit to the Congress teriorated barracks and other troop the sixth and final report on our progress used by American military personnel in toward offsetting the fiscal year 1974 bal- the FRG. The FRG also agrees to ab- ance of payments deficit resulting from the sorb about $8 million of real estate taxes deployment of U.S. forces in NATO Europe. and landing fees directly related to U.S. forces in Germany. Finally, very considerable budgetary relief is implicit in the FRG ' House Transmitted on May 27 (text from White agreement to purchase DM 2,250 million in press release); also printed as H Doc. 94-166, which special U.S. Treasury securities at a con- includes the text of the annex.

877 June 23, 1975 cessional interest rate of 2.5 percent. The sent the total financial burden incurred by the interest rate which Germany could have ob- Allies in support of U.S. forces in Europe. tained through investment of these funds in Our Allies absorb many of our troop-related marketable U.S. Treasury securities would, operation and maintenance costs for facili- of course, have been much higher. The ties, building and repairing roads, and other purchase of securities made by the FRG pur- payments which have a total value of several suant to the agreement were made at times hundred million dollars a year. when the market was paying just under A good economic argument can be made eight percent interest. As a consequence, the that some of our balance of payments ex- FRG will have foregone approximately $343 penditures would have occurred whether or million in interest over the life of these se- not our troops were in Europe, and hence curities. Essentially this represents a budg- should not have been charged against the etary gain to the U.S. NATO balance of payments account. For ex- A final provision of the Amendment re- ample, the Department of Defense purchased quires that we seek to reduce the amount approximately $137 million of petroleum, oil, paid by the U.S. to support NATO's Infra- and lubricants (POL) in Europe during FY structure Program. NATO recently agreed 1974, mostly for our Sixth Fleet operations. to a new five-year program (CY 1975-79) The great majority of these products were totaling $1.35 billion. The Allies have agreed purchased from the Middle East. However, to reduce the U.S. percentage from the cur- if the fleet had been brought home, its shift rent official level of 29.67 percent to 27.23 to U.S. POL resources would have forced percent. The new program also includes a other U.S. consumers to purchase their POL special category of projects totaling $98 mil- requirements from abroad. Thus, the im- lion which benefit only American forces and pact on our balance of payments expendi- which would normally have been funded in tures would have remained unchanged. the U.S. budget. When this special category We should also recognize that, even if our is considered, the eff'ective U.S. share is troops were returned to the continental U.S., approximately 21 percent. Likewise, the U.S. there would still be personnel-related ex- share of funding for the Common European penditures for European goods and serv- Pipeline deficit has been reduced from 36 ices. These personnel would continue to pur- percent to 25 percent. chase some European goods. Also, we should The Amendment specifies that 2214 months not overlook the fact that some of our mili-

(July 1, 1973-May 16, 1975) of Allied bal- tary-related balance of payments expendi- ance of payments transactions can be applied tures in Europe generate Allied or third against the FY 1974 deficit. The balance of nation purchases in the U.S.—both military payments data we have used have been based and commercial. on only the first 12 months of this period. Finally, we must consider that more than We do not yet have complete data on Allied $300 million of the U.S. defense expenditures procurement expenditures during the last in Europe merely reflect the efi'ect of dollar 10 1 o months of the statutory period. How- depreciation. This depreciation was a con- ever, assuming that Allied expenditures in tributing factor to the substantial improve- Foreign Military Sales (FMS) and commer- ment in the U.S. trade balance, but it has cial accounts remain at about the same levels made relatively more expensive the goods as in FY 1974, there would be available an and services purchased by our military additional $1.3 billion to offset our FY 1974 forces in Europe. expenditures. Gerald R. Ford. It should be noted that the Allied financial transactions reported here do not repre- The White House, May 27, 1975.

878 Department of State Bulletin INTERNATIONAL ORGANIZATIONS AND CONFERENCES

U.S. Discusses Human Rights Items mended for having permitted the Commission to come to Chile. It has taken issue with in OAS General Assembly certain aspects of the Commission's report. The report and the The General Assembly of the Organiza- observations of the Gov- ernment of Chile tion of American States (OAS) met at have merited the careful attention of us all. Washington May 8-19. Following are texts The primary issue of a statement by William D. Rogers, As- here, now, is not whether there may have been sistant Secretary for Inter-American Af- some defects or in- adequacies in the lAHRC report. It is fairs, ivho ivas Vice Chairman of the U.S. now somewhat dated. The important delegation, made in an informal session of more issue is the future the deep concern licads of delegations on May 16; a statement — which we all have for the promotion of respect for human bii Francis J. McNeil, Alternate U.S. Repre- rights and the elimination of human rights sentative to the OAS, made in Committee I violations wherever they occur, and our abil- (Juridical-Political Matters) on May 17; and ity to build and strengthen an international two resolutions adopted by the Assembly on I system to consider matters so vital to the May 19. common human values of this hemisphere. In this connection the suggestions and recommendations of the Commission for the future ASSISTANT SECRETARY ROGERS, MAY 16 deserve the attention of all, including the Goveimment of Chile. I wish to take this opportunity, Mr. Chair- The U.S. position on such questions is clear. man, to make a few comments on the agenda On June 27, 1974, Deputy Secretary of State item concerning the Inter-American Human Ingersoll wrote Chairman Morgan of the Rights Commission report on Chile. House Committee on Foreign Affairs with In article 3 of the Charter of the OAS, the reference to our obligation under the U.N. member states affirm, and I quote: Charter to promote respect for and observ- The American States proclaim the fundamental ance of human rights and fundamental free- rights of the individual without distinction as to doms for all. Mr. Ingersoll said:i race, nationality, creed, or sex. No matter where in the world violations of human The United States heartily endorses and rights occur, they trouble and concern us and we reaffirms, for its part, these words from our make our best efforts to ascertain the facts and charter. We deplore human rights violations promote respect for human rights and fundamental wherever they occur. freedoms. In 1959 the member states established the We do not regard human rights as an ex- Inter-American Human Rights Commission clusively domestic concern. The states who (lAHRC). The Council of the OAS prepared are members of our organization adopted and and approved its statute in 1960. The Second have subscribed to an international series of Special Inter-American Conference in 1965 standards. These standards are set down in increased its functions and powers. the Universal Declaration of Human Rights The Commission, in carrying out its duties, [Dec. 10, 1948] and in the American Declara- has issued a number of significant reports tion of the Rights and Duties of Man [May over the years, including the report on the

human rights situation in Chile. ' For text of the letter, see BULLETIN of Aug. 26, The Chilean Government is to be com- 1974, p. 310.

879 June 23, 1975 2, 1948]. We are fortunate that the OAS has of interaction between the Government of given the responsibility of inquiry, reporting, Chile and the Human Rights Commission is and recommendation, when violations of desirable, including opportunity for the these standards are alleged, to its autono- Commission to keep its information up to mous, independent, and expert Inter-Ameri- date by all means appropriate. can Human Rights Commission. In conclusion, I would stress that this The Commission, except in certain re- agenda item represents a test of the system spects as noted, received extensive coopera- and of the capacity of the members of the tion from the Government of Chile. It has Organization of American States rationally, filed the report that is now before us. The objectively, and effectively to weigh human Government of Chile has made observations rights issues collectively. In a sense, all of about that report. I will not take the time of us are on trial here—all of us, in our capacity the Assembly to review the findings of the to articulate a continuing standard and to Commission and the comments of the Gov- develop fair and effective procedures for the ernment of Chile. But I think it appropriate application of that standard to individual that we note our appreciation of the efforts cases. of those who have now been able to place It would be idle to pretend that this is an this matter before us so fully, and to com- easy or simple task. Temptations exist in mend what I sense to be a spirit, on all sides, such circumstances, either to maintain of seeking an outcome fully consistent with silence or, in speaking out, to exceed some- our shared commitments and aspirations what the rhetorical needs of the matter be- concerning human rights and fundamental fore us. freedoms. But this, it seems to me, is a high chal- We hope to continue to unite our efforts lenge. No issue is more fundamental to the with those of the other members of this business of the hemisphere than the humane organization, including especially the Gov- tradition which is common to us all—the ernment of Chile, in placing the great weight sustenance of human freedom and individual of this Assembly behind constructive steps dignity. It was this which drove us all to toward the promotion of human rights, here independence, and it is this which, above all and elsewhere in the hemisphere. We are else, tests the adequacy of our efforts to especially encouraged in this hope by the govern and lead our peoples. reaffirmation by the Government of Chile of As we have said, in the American Declara- its constructive attitude toward impartial tion of the Rights and Duties of Man: international visits, observation, and study. All men are born free and equal, in dignity and Its decision to welcome and cooperate with a in rights, and being endowed by nature with reason U.N. study group acting under a U.N. and conscience, they should conduct themselves as brothers one to another. Human Rights Commission resolution recently approved by the U.N. Economic and Social Council was not lightly taken. It MR. McNeil, committee I, MAY 17 deserves the attention and respect of all member states in this regard. I would like to say simply that, in the view We believe that this Assembly should take of this delegation, the annual report of the note of the forthcoming visit of the U.N. Inter-American Commission on Human working group, applaud the Chilean Govern- Rights contains various general recommen- ment's decision to cooperate with it, and dations in the part of the report dealing state that we will keep the issue before us with areas in which further steps are needed pending receipt of the forthcoming U.N. to give effect to the human rights set forth working group reports. in the American Declaration of the Rights My delegation further believes that the and Duties of Man. Inter-American Human Rights Commission These general recommendations deal with should remain seized of the issue. A process provisions concerning powers for exceptional

880 Department of State Bulletin ,

situations, rules for habeas corpus or am- give the most careful attention to the suggestions paro, and the availability of information and recommendations of the Inter-American Com- mission concerning human about persons who have been detained. rights. 4. To request the Inter-American Commission to My delegation believes that these recom- secure, by all appropriate means, additional in- merit the careful considera- mendations most formation, to consider that information, and to sub- tion of all member governments so that each, mit a report on the status of human rights in Chile to the next according to its own constitutional and session of the General Assembly, ensuring that the Government of Chile has juridical situation, may determine how the reasonable time to submit its own observations. basic objectives of these recommendations may best be achieved in its own country. TEXT OF RESOLUTION'

2 TEXT OF RESOLUTION Annual Report of the Inter-American Commis- sion on Human Rights Report of the Inter-American Commission on The General Assembly, u Human Rights on "The Status of Human Rights in Chile" Having seen the annual report presented to its fifth regular session by the Inter-American Com-

Whereas : mission on Human Rights ( AG/doc. 520/75) It has received the report of the Inter-American Resolves : Commission on Human Rights on "The Status of Human Rights in Chile," based upon materials To take note of the annual report of the Inter- presented to the Commission by various sources, American Commission on Human Rights and to including the Government of Chile, and on its in thank the Commission for the important work it situ investigation of the facts during its visit to has been doing.

Chile from July 22 to August 2, 1974; This report, together with the observations of the Government of Chile, was sent to the United Nations and was considered at the Thirty-first Session of Panama Canal Treaty the United Nations Commission on Human Rights; Progress on As a result of this consideration, in which seven Noted by OAS General Assembly member states of the OAS took part, the United Nations Commission on Human Rights unanimously Following is a joint U.S.-Panama state- decided to send a working group to Chile to study ment read by Secretary Kissinger on May 10 the present status of human rights in that country; delegations and in an informal session of heads of Consequently, both the Inter-American Commis- at the General Assembly of the Organization sion on Human Rights and the next session of the of American States, together with the text of General Assembly will have the additional benefit a resolution adopted by the Assembly on May of a report based on further investigations to assist 15. them in their work in the coming year, The General Assembly,

Resolves : STATEMENT READ BY SECRETARY KISSINGER

1. To take note, with appreciation, of the report of the Inter- American Commission on Human Rights The negotiations looking toward an agree- as well on "The Status of Human Rights in Chile," ment for a new canal treaty between the Re- as the observations of the Government of Chile on public of Panama and the United States of that report. America began 11 years ago, when both coun- 2. To take note, with approval, of the acceptance April 3, by the Government of Chile of the visit of the tries signed a joint declaration on working group of the United Nations Commission 1964, under the auspices of the Council of the on Human Rights. Organization of American States. 3. To respectfully call upon all the governments, In reviewing the present state of the nego- including the Government of Chile, to continue to

'OAS doc. AG/Res. 192 (V-0/75); adopted by -OAS doc. AG/RES. 190 (V-0/75); adopted by the Assembly on May 19. the Assembly on May 19.

881 June 23, 1975 tiations for a new canal treaty, we wish to ties which might frustrate the ultimate suc- emphasize that the recent efforts of both cess of the negotiation. parties to be frank and open in their presen- We realize that the hemisphere, which con- tations has opened the door to advances in siders the canal issue a matter of common in- the negotiating process. We continue to be- terest, will welcome with profound satisfac- lieve that this is an indispensable prerequisite tion that day in the not too distant future to the success of the conversations being held when two sovereign nations of the continent by the representatives of our respective gov- —Panama and the United States—present ernments and peoples. the final results of their efforts in the form of We view the negotiations as a search for a a new, just, and equitable treaty and lay to total and complete agreement directed at rest the possibility of an event of interna- eliminating all causes of conflict between the tional political turmoil which would be of

Republic of Panama and the United States of concern to all. America, as an elaboration of that which was first set down in the statement of eight principles signed by the representatives of both TEXT OF RESOLUTION! countries on February 7, 1974. These eight Negotiations Between the Governments of principles constitute the fundamental frame- Panama and the United States of America on work within which the present negotiations THE Question of the Panama Canal are going forward, and it is on those princi- The General Assembly, ples that an entirely new treaty, of fixed Having heard the report on the negotiations con- duration, will be based. cerning the Panama Canal question made by the The negotiations are a single whole; the representatives of the United States and Panama subjects cannot be separated one from anoth- and er. To arrange the procedures for the nego- Considering: tiations, the work has been divided into sub- That the Meetings of Foreign Ministers held in jects taken in up a predetermined sequence Bogota, Tlatelolco, and Washington proclaimed the so that the two parties in an objective and Panama Canal question to be of common interest honest fashion might arrive at partial agree- for Latin America; ments leading to a single, coherent transac- That on March 24, 1975, the Head of the Pana- manian Government and the Presidents of Colombia, tion. Costa Rica, and Venezuela signed in Panama City a During the last year there have been sig- Joint Declaration concerning the Panama Canal nificant advances in important subjects ; these question; and include agreements relating to jurisdiction, That the Declaration has as antecedents the Joint to the administration of the canal, and to con- Declaration signed by the United States and Panama in the Council of the Organization of American ceptual aspects on protection and defense of States on April 3, 1964, and an eight-point agree- the canal. But it is still necessary to nego- ment signed by the two countries on February 7, tiate other fundamental subjects, among 1974, known as the Tack-Kissinger Statement, them the duration of the new treaty and the Resolves : use of land and water. 1. To note with satisfaction that on February 7, It is clear that the negotiation is a delicate 1974, the Foreign Minister of the Republic of political process. The need for a new treaty is Panama and the Secretary of State of the United clear, but it has been developing over too States signed an eight-point Statement setting forth long a time. We look toward a new type of basic principles that will serve as a guide for the negotiators of the two countries, in which it is relationship between Panama and the United stipulated, inter alia, that the Panamanian territory States which will be truly equitable to both. of which the Panama Canal forms a part will soon are We convinced that it is imperative to be returned to the jurisdiction of the Republic of achieve real and visible progress in the sub- Panama, and that the Republic will assume total jects to be negotiated, and both governments are bending their best efforts to that end, 'OAS doc. AG/RES. 174 (V-0/75); adopted by attempting to avoid unsurmountable difficul- the Assembly on May 15.

882 Department of State Bulletin rosponsibility for the inter-oceanic canal on the ^°^^^ Council lal*,™^*'""^' at London April 14 termination of the new treaty. 1973. Entered into force October 1, 1973. TI.'VS 2. To note with satisfaction the report presented Notification by the Delegations of the United States and of that constitutional procedures completed: Panama, which records the progress made. Peru, February 19, 1975. Accession deposited: 3. To express the hope that a prompt and success- Yugoslavia, March 31 1975 Protocol for the continuation ful conclusion will be reached in the negotiations in force of the' international coflFee agreement that the governments of 1968, as amended and the United States and the extended, with annex. Approved by the Republic of Panama have been conducting for eleven Inter- national Coffee Council at London September 26, years for the purpose of concluding a new, just, and fair treaty concerning the Canal, which will defini- Sigiiatures Ecuador,-' : Indonesia, January 28, tively eliminate the causes conflict of between the 1975; Nicaragua,^ February 14, 1975; Trinidad two countries and be efficacious in strengthening and Tobago,^ February 19, 1975; Colombia,' international cooperation and peace in the Americas. March 3, 1975; Bolivia,^ Cyprus, Ivory Coast March 17, 1975; United Kingdom,' March 14* 1975; France,-' March 18, 1975; Jamaica," Paraguay,^ March 19, 1975; Ghana, Switzerland March 24, 1975; Norway, March 25, 1975; Aus- tralia, Belgium,= El Salvador,' India, Kenya, Luxembourg,'' Madagascar, March 26, 1975;' Canada, Gabon, Federal Republic of Germany,' Haiti,' Honduras, Netherlands," New Zealand, Ni- geria, Peru,= Portugal,' Spain, Sweden, Togo, Cameroon, March 27, 1975; Czechoslovakia, Ethio- pia, Tanzania, March 28, 1975; Burundi,' Central Current Actions African Republic, Congo, Dahomey, Panama,' Sierra Leone, Yugoslavia,' Venezuela, March 31, 1975.

MULTILATERAL Ratifications deposited: Bolivia, April 1, 1975; Ecuador, February 11, 1975; Trinidad and Tobago, April 2, 1975. Antarctica Conservation Recommendations relating to the furtherance of the principles and objectives of the Antarctic treaty Convention on international trade in endangered of December 1, 1959 (TIAS 4780). Adopted at species of wild fauna and flora, with appendices. Wellington November 10, 1972 at the Seventh Done at Washington March 3, 1973. Enters into Antarctic Treaty Consultative Meeting. force July 1, 1975. Notification of approval: United Kingdom, May Ratification deposited: Mauritius, April 28, 1975. 29, 1975, with the exception of Recommendation VII-5. Customs Entered into force: May 29, 1975 for Recommen- Convention concerning the international union for dations VII-1 through VII-3, VII-7, and VII-8. the publication of customs tarifl!'s, regulations for the execution of the convention, and final Aviation declarations. Signed at Brussels July 5, 1890. Entered into International air services transit agreement. Done force April 1, 1891. TS 384. at Chicago December 7, 1944. Entered into force Accession deposited: Zaire, May 5, 1975. February 8, 1945. 59 Stat. 1693. Protocol modifying the conv'ention signed at Brussels Effective date of succession: Bahamas, June 26, July 5, 1890 relating to the creation of an Inter- 1975. national Union for the Publication of Customs Convention on international civil aviation. Done at Tarifl's. Done at Brussels December 16, 1949. Chicago December 7, 1944. Entered into force Entered into force May 5, 1950; for the United April 4, 1947. TIAS 1591. States September 15, 1957. TIAS 3922. Adherence deposited: Bahamas, May 27, 1975. Accession deposited: Zaire, May 5, 1975.

Biological Weapons Economic Cooperation

Convention on the prohibition of the development, Agreement establishing a financial support fund of production and stockpiling of bacteriological (bio- the Organization for Economic Cooperation and logical) and toxin weapons and on their destruc- Development. Done at Paris April 9, 1975. Enters tion. Done at Washington, London and Moscow into force on the tenth day following the day on April 10, 1972. Entered into force March 26, 1975. which member countries of the OECD holding at Ratification deposited: Jordan, June 2, 1975. ' Not in force. CofFee ' Subject to approval, ratification, or acceptance. Agreement amending and extending the interna- ' Shall apply to Hong Kong. tional cofl'ee agreement 1968. Approved by the ' Shall apply to Berlin (West).

June 23, 1975 883 least 90 per cent of the quotas, having complied Mauritania," May 3, 1975; United Kingdom," May with certain conditions, have deposited instru- 13, 1975. iv ments of ratification, acceptance or approval, or notifications of consent to be bound. Weights and Measures Signatures: Australia, Austria, Belgium, Canada, Convention concerning the creation of an interna- Denmark, Federal Republic of Germany, Fin- tional office of weights and measures, with annexes. land, France, Greece, Iceland, Ireland, Italy, Signed at Paris May 20, 1875. Entered into force Zealand, Japan, Luxembourg, Netherlands, New January 1, 1876; for the United States August 2, Norway, Portugal, Spain, Sweden, Switzerland, 1878. TS 378. United Kingdom, United States, April 9, 1975. Accession deposited: Iran, February 25, 1975. Convention amending the convention relating to Health weights and measures. Done at Sevres October 6, Amendment of Articles 24 and 25 of the constitu- 1921. Entered into force June 23, 1922; for the tion of the World Health Organization of July 22, United States October 24, 1923. TS 673. 1946, as amended (TIAS 1808, 4643). Adopted at Accession deposited: Iran, February 25, 1975. Geneva May 23, 1967. Entered into force May 21, 1975. Wheat Acceptances deposited: Congo (Brazzaville), May Protocol modifying and further extending the wheat 28, 1975; Mauritania, May 21, 1975; Sudan, trade convention (part of the international wheat May 28, 1975; Uganda, May 22, 1975. agreement) 1971 (TIAS 7144, 7988). Done at Washington March 25, 1975. Enters into force Dumping Ocean June 19, 1975, with respect to certain provisions Convention on the prevention of marine pollution and July 1, 1975, with respect to other provisions. by dumping of wastes and other matter, with an- Declaration of provisional application deposited: nexes. Done at London, Mexico City, Moscow and Portugal, June 5, 1975; Tunisia, June 4, 1975. Washington December 29, 1972.^ Accession deposited: Bolivia, June 2, 1975. Accession deposited: Afghanistan, April 2, 1975.

Space BILATERAL Convention on registration of objects launched into outer space. Opened for signature at New York Bangladesh January 14, 1975.' of Signature: Iran, May 27, 1975. Agreement amending the agreement for sales agricultural commodities of October 4, 1974 (TIAS Telecommunications 7949). Effected by exchange of notes at Dacca May 16, 1975. Entered into force May 16, 1975. Telegraph regulations, with appendices, annex and final protocol. Done at Geneva April 11, 1973. People's Republic of China Entered into force September 1, 1974.^^ October Notification of approval: Yugoslavia, March 20, Agreement amending the agrreement of 28, 1975. 1974 regarding the holding of "The Exhibition of People's Republic of Telephone regulations, with appendices and final Archeological Finds of the China" in the United States, with related note. protocol. Done at Geneva April 11, 1973. Entered Effected by exchange of notes at Peking April 15, into force September 1, 1974.^ 1975. Entered into force April 15, 1975. Notification of approval: Yugoslavia, March 20, 1975. Hungary International telecommunication convention with annexes and protocols. Done at Malaga-Torremolinos Agreement amending the air transport agreement October 25, 1973. Entered into force January 1, of May 30, 1972 (TIAS 7577). Effected by ex- 1975." change of notes at Budapest May 9 and 16, 1975. Ratification deposited: Trinidad and Tobago, Entered into force May 16, 1975. March 1975. 13, Poland Partial revision of the radio regulations, Geneva, 1959, as amended (TIAS 4893, 5603, 6332, 6590, Agreement regarding fisheries in the northeastern 7435) to establish a new frequency allotment plan Pacific Ocean off the coast of the United States, for high-frequency radiotelephone coast stations, with annexes and agreed minutes. Signed at with annexes and final protocol. Done at Geneva Washington May 30, 1975. Entered into force June 8, 1974.' June 15, 1975. Notification of approval: Norway, April 2, 1975. Romania Tourism Agreement relating to trade in cotton textiles, with Statutes of the World Tourism Organization (WTO). annex. Effected by exchange of notes at Washing- Done at Mexico City September 27, 1970. Entered ton June 2, 1975. Entered into force June 2, 1975. into force January 2, 1975.^

Declarations to adopt the statutes deposited: ' Not in force. Belgium,^ May 12, 1975; Ireland," May 1, 1975; Subject to approval, ratification, or acceptance. Jamaica, April 24, 1975; Malaysia, May 8, 1974; ' Not in force for the United States.

884 Department of State Bulletin INDEX Jane 23, 1975 Vol. LXXII, No. 1878

Discusses i Human Rights Items Chile. U.S. in Treaty Information. Current Actions .... 883 ' OAS General Assembly (Rogers, McNeil, United Nations texts of resolutions) 879 Preparations for the Seventh Special Session Congress of the United Nations General Assembly Final Report on NATO Offset Transmitted to (Boeker, Ferguson, Morey) 867 the Congress (message from President U.N. Disaster Relief Organization To Receive Ford) 877 U.S. Grant 864 Preparations for the Seventh Special Session The United States and the Future of the of the United Nations General Assembly United Nations (Seali) 865 (Boeker, Ferguson, Morey) 867 Report on Development Coordination Trans- mitted to the Congress (message i from Name Index

' President Ford) 876 The United States and the Future of the Boeker, Paul H 867 I United Nations (Scali) 865 Bunker, Ellsworth 859 Ferguson, Clarence Clyde, Jr 867

! Developing Countries Ford, President Preparations for the Seventh Special Session 876, 877 Kissinger, Secretary of the United Nations General Assembly 837, 881 McNeil, Francis J (Boeker, Ferguson, Morey) 867 879 Morey, Roy D Report on Development Coordination Trans- 867 Rogers, William D 879 mitted to the Congress (message from Scali, John 865 President Ford) 876

Energy. Secretary Kissinger Attends lEA and OECD Meetings at Paris (Kissinger, communiques) 837 Check List of Department of State Europe. Secretary Kissinger Attends lEA and OECD Meetings at Paris (Kissinger, com- Press Releases: June 2—8 muniques) 837 Press releases may be obtained from the Foreign Aid. Report on Development Coordi- Office of Press Relations, Department of State, nation Transmitted to the Congress (mes- Washington, D.C. 20520. sage from President Ford) 876 Releases isued prior to June 2 which appear in this issue of the Bulletin are Nos. 284 of Human Rights. U.S. Discusses Human Rights May 22, 298, 299, and 301 of May 27, 302 and Items in OAS General Assembly (Rogers, 304 of May 28, and 304A of May 29. McNeil, texts of resolutions) 879 So. Date Subject North Atlantic Treaty Organization. Final *310 6/2 Soviet WWII veterans visit U.S., Report on NATO Offset Transmitted to the May 28-June 5. 6/2 U.S. and Poland sign agreement Congress (message from President Ford) . 877 t311 on North Pacific fisheries. Organization of American States t312 6/2 Kissinger: news conference, Salz- Progress on Panama Canal Treaty Noted by burg. summit communique, May OAS General Assembly (joint U.S.-Panama 1313 6/2 NATO 30. statement read by Secretary Kissinger, text 1314 6/4 "Foreign Relations," 1949, Vol. of resolution) 881 IV, Western Europe, released. U.S. Discusses Human Rights Items in OAS *315 6/4 Government Advisory Committee General Assembly (Rogers, McNeil, texts of on International Book and Li- resolutions) 879 brary Programs, June 17. Panama *316 6/4 Shipping Coordinating Committee, Subcommittee on Safety of Panama and the United States: Toward A Life at Sea, June 26. New Relationship (Bunker) 859 t317 6/4 Kissinger: Council of the Ameri- Progress on Panama Canal Treaty Noted by cas. OAS General Assembly (joint U.S.-Panama *318 6/5 Summary of NATO CCMS ac- statement read by Secretary Kissinger, text tivities. Romania sign textile of resolution) 881 *319 6/5 U.S. and agreement. Presidential Documents *320 6/5 U.S. Advisory Commission on Final Report on NATO Offset Transmitted to Educational and Cultural Af- the Congress 877 fairs, June 26. *321 6/6 Loughran sworn in as Ambassador Report on Development Coordination Trans- to Somalia (biographic data). mitted to the Congress 876 Terrorism. U.S. Condemns Terrorist Murder * Not printed. later issue of the Bulletin. of American Officers in Iran (Department t Held for a statement) 858